Analyzing Viking Therapeutics (NASDAQ:VKTX) and Kezar Life Sciences (NASDAQ:KZR)

Kezar Life Sciences (NASDAQ:KZR) and Viking Therapeutics (NASDAQ:VKTX) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Kezar Life Sciences and Viking Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kezar Life Sciences	N/A	-47.28%	-40.79%
Viking Therapeutics	N/A	-18.41%	-17.69%

Volatility & Risk

Kezar Life Sciences has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Viking Therapeutics has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Kezar Life Sciences and Viking Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kezar Life Sciences	0	2	1	0	2.33
Viking Therapeutics	0	0	9	1	3.10

Kezar Life Sciences currently has a consensus target price of $11.00, indicating a potential upside of 1,645.75%. Viking Therapeutics has a consensus target price of $111.56, indicating a potential upside of 119.17%. Given Kezar Life Sciences’ higher possible upside, research analysts plainly believe Kezar Life Sciences is more favorable than Viking Therapeutics.

Valuation & Earnings

This table compares Kezar Life Sciences and Viking Therapeutics’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kezar Life Sciences	$7.00 million	6.55	-$101.87 million	($1.40)	-0.45
Viking Therapeutics	N/A	N/A	-$85.89 million	($0.93)	-54.73

Viking Therapeutics has lower revenue, but higher earnings than Kezar Life Sciences. Viking Therapeutics is trading at a lower price-to-earnings ratio than Kezar Life Sciences, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.9% of Kezar Life Sciences shares are owned by institutional investors. Comparatively, 76.0% of Viking Therapeutics shares are owned by institutional investors. 9.3% of Kezar Life Sciences shares are owned by company insiders. Comparatively, 4.7% of Viking Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Viking Therapeutics beats Kezar Life Sciences on 9 of the 13 factors compared between the two stocks.

About Kezar Life Sciences

Kezar Life Sciences, Inc., a clinical-stage biotechnology company, engages in the discovery and development of novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer in the United States. The company's lead product candidate is zetomipzomib (KZR-616), a selective immunoproteasome inhibitor that is in Phase 2b clinical trials for various indications, including lupus nephritis, dermatomyositis, and polymyositis; Phase 1b clinical trials in systemic lupus erythematosus; and completed Phase 2a clinical trials in lupus nephritis. Its preclinical products include KZR-261, a novel first-in-class protein secretion inhibitor for the treatment of tumors resistant to traditional chemotherapeutics. Kezar Life Sciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.

About Viking Therapeutics

Viking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; VK2735, a novel dual agonist of the glucagon-like peptide, which is in Phase 1 SAD/MAD clinical trial, and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.