Comprehensive Stock Comparison
Compare Sol-Gel Technologies Ltd. (SLGL) vs Zai Lab Limited (ZLAB) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | SLGL | 6.4% revenue growth vs ZLAB's 15.3% |
| Quality / Margins | ZLAB | -38.1% net margin vs SLGL's -227.4% |
| Stability / Safety | SLGL | Beta 0.17 vs ZLAB's 0.99, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SLGL | +12.7% vs ZLAB's -44.5% |
| Efficiency (ROA) | ZLAB | -15.0% ROA vs SLGL's -35.5%, ROIC -42.8% vs -41.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Sol-Gel Technologies is a clinical-stage specialty pharmaceutical company developing topical dermatology treatments using its proprietary microencapsulation delivery system. It generates revenue primarily through research collaborations and licensing agreements — notably with Perrigo — while advancing its pipeline toward commercialization. The company's key competitive advantage is its patented microencapsulation technology that enables controlled drug release and improved efficacy for topical treatments.
Zai Lab is a biopharmaceutical company that licenses, develops, and commercializes innovative therapies for oncology, autoimmune disorders, and infectious diseases primarily in Greater China. It generates revenue through product sales of its commercialized drugs — like Zejula for ovarian cancer and NUZYRA for bacterial infections — supplemented by milestone payments and royalties from its extensive partnership network. The company's key advantage lies in its strategic licensing model that gives it exclusive rights to promising late-stage and commercial-stage therapies for the Greater China market, allowing it to build a diversified portfolio without bearing full R&D costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ZLAB leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). SLGL leads in 2 (Total Returns, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
ZLAB is the larger business by revenue, generating $460M annually — 70.2x SLGL's $7M. Profitability is closely matched — net margins range from -38.1% (ZLAB) to -2.3% (SLGL). On growth, SLGL holds the edge at +8.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| RevenueTrailing 12 months | $7M | $460M |
| EBITDAEarnings before interest/tax | -$16M | -$218M |
| Net IncomeAfter-tax profit | -$15M | -$176M |
| Free Cash FlowCash after capex | $0 | -$159M |
| Gross MarginGross profit ÷ Revenue | -153.5% | +58.6% |
| Operating MarginEBIT ÷ Revenue | -2.6% | -49.9% |
| Net MarginNet income ÷ Revenue | -2.3% | -38.1% |
| FCF MarginFCF ÷ Revenue | -120.4% | -34.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.1% | +17.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +132.2% | +43.8% |
Valuation Metrics
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| Market CapShares × price | $2.6B | $21.3B |
| Enterprise ValueMkt cap + debt − cash | $2.5B | $20.8B |
| Trailing P/EPrice ÷ TTM EPS | -241.26x | -12.01x |
| Forward P/EPrice ÷ next-FY EPS est. | — | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 221.35x | 46.21x |
| Price / BookPrice ÷ Book value/share | 88.53x | 2.94x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
ZLAB delivers a -24.5% return on equity — every $100 of shareholder capital generates $-25 in annual profit, vs $-43 for SLGL. SLGL carries lower financial leverage with a 0.05x debt-to-equity ratio, signaling a more conservative balance sheet compared to ZLAB's 0.31x. On the Piotroski fundamental quality scale (0–9), SLGL scores 4/9 vs ZLAB's 3/9, reflecting mixed financial health.
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| ROE (TTM)Return on equity | -42.7% | -24.5% |
| ROA (TTM)Return on assets | -35.5% | -15.0% |
| ROICReturn on invested capital | -41.5% | -42.8% |
| ROCEReturn on capital employed | -33.7% | -27.9% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 3 |
| Debt / EquityFinancial leverage | 0.05x | 0.31x |
| Net DebtTotal debt minus cash | -$18M | -$455M |
| Cash & Equiv.Liquid assets | $19M | $680M |
| Total DebtShort + long-term debt | $1M | $224M |
| Interest CoverageEBIT ÷ Interest expense | — | -48.75x |
Total Returns (with DRIP)
A $10,000 investment in SLGL five years ago would be worth $9,732 today (with dividends reinvested), compared to $1,186 for ZLAB. Over the past 12 months, SLGL leads with a +1268.4% total return vs ZLAB's -44.5%. The 3-year compound annual growth rate (CAGR) favors SLGL at 28.1% vs ZLAB's -19.7% — a key indicator of consistent wealth creation.
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| YTD ReturnYear-to-date | +117.5% | +10.9% |
| 1-Year ReturnPast 12 months | +1268.4% | -44.5% |
| 3-Year ReturnCumulative with dividends | +110.0% | -48.3% |
| 5-Year ReturnCumulative with dividends | -2.7% | -88.1% |
| 10-Year ReturnCumulative with dividends | -32.8% | -31.2% |
| CAGR (3Y)Annualised 3-year return | +28.1% | -19.7% |
Risk & Volatility
SLGL is the less volatile stock with a 0.17 beta — it tends to amplify market swings less than ZLAB's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SLGL currently trades 98.5% from its 52-week high vs ZLAB's 43.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.17x | 0.99x |
| 52-Week HighHighest price in past year | $93.12 | $44.34 |
| 52-Week LowLowest price in past year | $4.02 | $15.96 |
| % of 52W HighCurrent price vs 52-week peak | +98.5% | +43.3% |
| RSI (14)Momentum oscillator 0–100 | 69.7 | 57.7 |
| Avg Volume (50D)Average daily shares traded | 22K | 622K |
Analyst Outlook
Wall Street rates SLGL as "Buy" and ZLAB as "Buy". Consensus price targets imply 82.1% upside for ZLAB (target: $35) vs -45.5% for SLGL (target: $50).
| Metric | SLGLSol-Gel Technolog… | ZLABZai Lab Limited |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $50.00 | $35.00 |
| # AnalystsCovering analysts | 6 | 11 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Sol-Gel Technologie… (SLGL) | 100 | 62.32 | -37.7% |
| Zai Lab Limited (ZLAB) | 100 | 28.99 | -71.0% |
Sol-Gel Technologie… (SLGL) returned -3% over 5 years vs Zai Lab Limited (ZLAB)'s -88%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sol-Gel Technologie… (SLGL) | $0.00 | $12M | — |
| Zai Lab Limited (ZLAB) | $0.00 | $460M | — |
Zai Lab Limited's revenue grew from $0M (2016) to $460M (2025) — a 0.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Sol-Gel Technologie… (SLGL) | -181.4% | -91.7% | +49.5% |
| Zai Lab Limited (ZLAB) | -1074.3% | -38.1% | +96.4% |
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sol-Gel Technologie… (SLGL) | -1.77 | -0.38 | +78.5% |
| Zai Lab Limited (ZLAB) | -39.7 | -1.6 | +96.0% |
Zai Lab Limited's EPS grew from $-39.70 (2016) to $-1.60 (2025).
Chart 5Free Cash Flow — 5 Years
Sol-Gel Technologies Ltd. generated $-14M FCF in 2024 (-77% vs 2021). Zai Lab Limited generated $-159M FCF in 2025 (+72% vs 2021).
SLGL vs ZLAB: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is SLGL or ZLAB a better buy right now?
Analysts rate Sol-Gel Technologies Ltd. (SLGL) a "Buy" — based on 6 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — SLGL or ZLAB?
Over the past 5 years, Sol-Gel Technologies Ltd. (SLGL) delivered a total return of -2.7%, compared to -88.1% for Zai Lab Limited (ZLAB). A $10,000 investment in SLGL five years ago would be worth approximately $10K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ZLAB returned -31.2% versus SLGL's -32.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — SLGL or ZLAB?
By beta (market sensitivity over 5 years), Sol-Gel Technologies Ltd. (SLGL) is the lower-risk stock at 0.17β versus Zai Lab Limited's 0.99β — meaning ZLAB is approximately 467% more volatile than SLGL relative to the S&P 500. On balance sheet safety, Sol-Gel Technologies Ltd. (SLGL) carries a lower debt/equity ratio of 5% versus 31% for Zai Lab Limited — giving it more financial flexibility in a downturn.
04Which has better profit margins — SLGL or ZLAB?
Zai Lab Limited (ZLAB) is the more profitable company, earning -38.1% net margin versus -91.7% for Sol-Gel Technologies Ltd. — meaning it keeps -38.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZLAB leads at -49.9% versus -104.1% for SLGL. At the gross margin level — before operating expenses — SLGL leads at 98.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Which pays a better dividend — SLGL or ZLAB?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
06Is SLGL or ZLAB better for a retirement portfolio?
For long-horizon retirement investors, Sol-Gel Technologies Ltd. (SLGL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.17)). Both have compounded well over 10 years (SLGL: -32.8%, ZLAB: -31.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
07What are the main differences between SLGL and ZLAB?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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