Critical Analysis: Zogenix (NASDAQ:ZGNX) & Senseonics Holdings (SENS)

Senseonics Holdings (NASDAQ: SENS) and Zogenix (NASDAQ:ZGNX) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Senseonics Holdings and Zogenix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senseonics Holdings 0 0 3 0 3.00
Zogenix 0 0 4 0 3.00

Senseonics Holdings presently has a consensus price target of $4.50, suggesting a potential upside of 61.87%. Zogenix has a consensus price target of $24.75, suggesting a potential upside of 102.04%. Given Zogenix’s higher possible upside, analysts clearly believe Zogenix is more favorable than Senseonics Holdings.

Insider and Institutional Ownership

87.6% of Zogenix shares are held by institutional investors. 5.0% of Zogenix shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Senseonics Holdings and Zogenix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senseonics Holdings -2,364.01% N/A -272.41%
Zogenix -309.76% -70.75% -35.37%

Earnings & Valuation

This table compares Senseonics Holdings and Zogenix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Senseonics Holdings $1.68 million 203.87 -$43.81 million N/A N/A
Zogenix $27.38 million 11.11 -$72.48 million ($3.43) -3.57

Senseonics Holdings has higher revenue, but lower earnings than Zogenix.

Summary

Zogenix beats Senseonics Holdings on 7 of the 10 factors compared between the two stocks.

About Senseonics Holdings

Senseonics Holdings, Inc. is a medical technology company. The Company focuses on the design, development and commercialization of glucose monitoring systems. The Company operates through glucose monitoring systems segment. It offers a continuous glucose monitoring (CGM) system, Eversense, which is designed an implantable CGM system designed to continually measure glucose levels in people with diabetes. The Company’s Eversense system consists of components, such as a sensor, which is inserted subcutaneously in the upper arm by a healthcare provider; an external removable smart transmitter that receives, assesses and relays the data from the sensor and also provides vibratory alerts, and a mobile application that receives data from the transmitter and provides real-time glucose readings, alerts and other data on the user’s mobile device, such as a smartphone, Apple Watch or tablet.

About Zogenix

Zogenix, Inc. is a pharmaceutical company engaged in developing and commercializing central nervous system (CNS) therapies that address specific clinical needs for people living with orphan and other CNS disorders. Its primary area of therapeutic focus is epilepsy and related seizure disorders. Its lead product candidate, ZX008, is a low-dose fenfluramine for the treatment of seizures associated with Dravet syndrome. ZX008 has received orphan drug designation in the United States and European Union (EU), for the treatment of Dravet syndrome. The Company has an additional product candidate, Relday (risperidone once-monthly long-acting injectable) for the treatment of schizophrenia. Relday is a long-acting injectable formulation of risperidone. Risperidone is used to treat the symptoms of schizophrenia and bipolar disorder in adults and teenagers 13 years of age and older. It has completed the Phase I program for Relday.

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