Patheon (NYSE: PTHN) is one of 104 public companies in the “Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Patheon to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, profitability, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Patheon 5.63% -35.93% 4.18%
Patheon Competitors -2,435.82% -69.61% -7.41%

Valuation and Earnings

This table compares Patheon and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Patheon $1.87 billion $31.70 million 46.03
Patheon Competitors $8.17 billion $1.09 billion 151.87

Patheon’s competitors have higher revenue and earnings than Patheon. Patheon 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Patheon and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patheon 0 6 1 0 2.14
Patheon Competitors 881 3826 6812 181 2.54

Patheon currently has a consensus target price of $33.60, indicating a potential downside of 3.95%. As a group, “Pharmaceuticals” companies have a potential upside of 19.03%. Given Patheon’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Patheon has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

0.6% of Patheon shares are held by institutional investors. Comparatively, 44.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.1% of Patheon shares are held by insiders. Comparatively, 11.4% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Patheon competitors beat Patheon on 9 of the 12 factors compared.

Patheon Company Profile

Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.

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