Vertex Pharmaceuticals (NASDAQ: VRTX) is one of 286 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its competitors? We will compare Vertex Pharmaceuticals to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

93.3% of Vertex Pharmaceuticals shares are owned by institutional investors. Comparatively, 50.2% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 1.8% of Vertex Pharmaceuticals shares are owned by insiders. Comparatively, 16.6% 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 is poised for long-term growth.

Volatility and Risk

Vertex Pharmaceuticals has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals’ competitors have a beta of 5.94, indicating that their average share price is 494% more volatile than the S&P 500.

Profitability

This table compares Vertex Pharmaceuticals and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vertex Pharmaceuticals 8.53% 9.23% 5.01%
Vertex Pharmaceuticals Competitors -5,311.45% -218.34% -39.53%

Earnings and Valuation

This table compares Vertex Pharmaceuticals and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vertex Pharmaceuticals $1.70 billion -$112.05 million 181.64
Vertex Pharmaceuticals Competitors $284.28 million $33.78 million 83.08

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

Analyst Recommendations

This is a breakdown of current ratings for Vertex Pharmaceuticals and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vertex Pharmaceuticals 0 2 23 0 2.92
Vertex Pharmaceuticals Competitors 859 3211 11651 231 2.71

Vertex Pharmaceuticals presently has a consensus price target of $172.74, indicating a potential upside of 21.92%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 45.16%. Given Vertex Pharmaceuticals’ competitors higher possible upside, analysts clearly believe Vertex Pharmaceuticals has less favorable growth aspects than its competitors.

Summary

Vertex Pharmaceuticals beats its competitors on 8 of the 13 factors compared.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated is engaged in discovering, developing, manufacturing and commercializing medicines for serious diseases. The Company is focused on developing and commercializing therapies for the treatment of cystic fibrosis (CF) and advancing its research and development programs in other indications. The Company’s marketed medicines are ORKAMBI and KALYDECO. ORKAMBI (lumacaftor in combination with ivacaftor) is approved as a treatment for patients having two copies (homozygous) of the Delta-F508 (F508del) mutation in their cystic fibrosis transmembrane conductance regulator (CFTR) gene. KALYDECO (ivacaftor) is approved for the treatment of CF patients having the G551D mutation or other specified mutations in their CFTR gene. The Company’s development programs in the field of CF include Tezacaftor (VX-661), VX-152, VX-440, VX-659, VX-445 and VX-371. VX-152, VX-440, VX-659 and VX-445 are CFTR corrector compounds.

Receive News & Stock Ratings for Vertex Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vertex Pharmaceuticals and related stocks with our FREE daily email newsletter.