Mallinckrodt PLC (NYSE: MNK) is one of 19 public companies in the “Specialty & Advanced Pharmaceuticals” industry, but how does it compare to its peers? We will compare Mallinckrodt PLC to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Institutional & Insider Ownership

97.4% of Mallinckrodt PLC shares are held by institutional investors. Comparatively, 66.8% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by institutional investors. 0.5% of Mallinckrodt PLC shares are held by insiders. Comparatively, 11.5% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Mallinckrodt PLC and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mallinckrodt PLC $3.27 billion $666.60 million 8.12
Mallinckrodt PLC Competitors $2.40 billion $905.93 million 0.19

Mallinckrodt PLC has higher revenue, but lower earnings than its peers. Mallinckrodt PLC is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mallinckrodt PLC and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mallinckrodt PLC 0 4 13 0 2.76
Mallinckrodt PLC Competitors 64 302 949 27 2.70

Mallinckrodt PLC presently has a consensus target price of $59.97, indicating a potential upside of 80.15%. As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 17.96%. Given Mallinckrodt PLC’s stronger consensus rating and higher possible upside, analysts plainly believe Mallinckrodt PLC is more favorable than its peers.

Profitability

This table compares Mallinckrodt PLC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mallinckrodt PLC 12.64% 15.28% 5.20%
Mallinckrodt PLC Competitors -540.60% -41.61% -24.68%

Risk & Volatility

Mallinckrodt PLC has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Mallinckrodt PLC’s peers have a beta of 0.88, suggesting that their average stock price is 12% less volatile than the S&P 500.

Summary

Mallinckrodt PLC beats its peers on 10 of the 13 factors compared.

About Mallinckrodt PLC

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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