Critical Analysis: Aerie Pharmaceuticals (AERI) versus The Competition
Aerie Pharmaceuticals (NASDAQ: AERI) is one of 283 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its competitors? We will compare Aerie Pharmaceuticals to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Institutional & Insider Ownership
95.7% of Aerie Pharmaceuticals shares are owned by institutional investors. Comparatively, 49.9% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 9.4% of Aerie Pharmaceuticals shares are owned by insiders. Comparatively, 17.2% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Aerie Pharmaceuticals has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Aerie Pharmaceuticals’ competitors have a beta of 1.28, indicating that their average stock price is 28% more volatile than the S&P 500.
Valuation & Earnings
This table compares Aerie Pharmaceuticals and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Aerie Pharmaceuticals||N/A||-$99.05 million||-17.52|
|Aerie Pharmaceuticals Competitors||$286.20 million||$34.74 million||131.06|
Aerie Pharmaceuticals’ competitors have higher revenue and earnings than Aerie Pharmaceuticals. Aerie Pharmaceuticals is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Aerie Pharmaceuticals and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aerie Pharmaceuticals Competitors||-5,616.95%||-481.94%||-40.11%|
This is a summary of recent ratings and target prices for Aerie Pharmaceuticals and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aerie Pharmaceuticals Competitors||804||3164||11461||230||2.71|
Aerie Pharmaceuticals currently has a consensus target price of $71.85, suggesting a potential upside of 22.40%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 44.21%. Given Aerie Pharmaceuticals’ competitors higher probable upside, analysts clearly believe Aerie Pharmaceuticals has less favorable growth aspects than its competitors.
Aerie Pharmaceuticals competitors beat Aerie Pharmaceuticals on 7 of the 12 factors compared.
Aerie Pharmaceuticals Company Profile
Aerie Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company. The Company is engaged in the discovery, development and commercialization of therapies for the treatment of patients with glaucoma and other diseases of the eye. The Company’s product candidates include Rhopressa (netarsudil ophthalmic solution) 0.02% (Rhopressa), and Roclatan (netarsudil/latanoprost ophthalmic solution) 0.02%/0.005% (Roclatan). The Company’s product candidates are designed to lower intraocular pressure (IOP) in patients with open-angle glaucoma and ocular hypertension. Its Rhopressa is a once-daily eye drop. Rhopressa inhibits Rho kinase (ROCK), and the norepinephrine transporter (NET), which are both biochemical targets for lowering IOP. Its Roclatan is a once-daily, fixed-dose combination of Rhopressa and latanoprost, which is a prescribed drug for the treatment of patients with open-angle glaucoma. The Company is engaged in conducting Phase III clinical trial for Roclatan.
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