Critical Contrast: Loxo Oncology (LOXO) vs. Its Competitors
Loxo Oncology (NASDAQ: LOXO) is one of 293 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its rivals? We will compare Loxo Oncology to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
51.0% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 44.4% of Loxo Oncology shares are held by company insiders. Comparatively, 16.9% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Loxo Oncology and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Loxo Oncology||N/A||-$101.07 million||-20.62|
|Loxo Oncology Competitors||$260.16 million||$66.28 million||-6.83|
Loxo Oncology’s rivals have higher revenue and earnings than Loxo Oncology. Loxo Oncology is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Loxo Oncology has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, Loxo Oncology’s rivals have a beta of 6.66, meaning that their average share price is 566% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Loxo Oncology and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Loxo Oncology Competitors||758||3015||11129||227||2.72|
Loxo Oncology currently has a consensus target price of $79.69, suggesting a potential downside of 8.00%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 34.29%. Given Loxo Oncology’s rivals higher possible upside, analysts clearly believe Loxo Oncology has less favorable growth aspects than its rivals.
This table compares Loxo Oncology and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Loxo Oncology Competitors||-5,503.87%||-484.39%||-43.58%|
About Loxo Oncology
Loxo Oncology, Inc. is a biopharmaceutical company. The Company is focused on development of medicines for patients with genetically defined cancers. The Company’s pipeline focuses on cancers that are dependent on single gene abnormalities, such that a single drug has the potential to treat the cancer with dramatic effect. Larotrectinib, formerly referred to as LOXO-101, is an oral, selective inhibitor of the tropomyosin receptor kinase (TRK) family in development for the treatment of tumors with TRK fusions. TRK fusions have been implicated in various tumor types, such as lung cancer, head and neck cancer, melanoma, colorectal cancer, sarcoma, and breast cancer. LOXO-195 is a drug candidate in preclinical development. It was designed as a second-generation TRK inhibitor intended to address predicted acquired resistance mechanisms resulting from therapy with a first-generation TRK inhibitor, such as larotrectinib, or multikinase inhibitors with anti-TRK activity.
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