Merrimack Pharmaceuticals (NASDAQ: MACK) is one of 187 public companies in the “Biotechnology & Medical Research” industry, but how does it contrast to its rivals? We will compare Merrimack Pharmaceuticals to related companies based on the strength of its analyst recommendations, risk, institutional ownership, valuation, earnings, dividends and profitability.

Volatility and Risk

Merrimack Pharmaceuticals has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Merrimack Pharmaceuticals’ rivals have a beta of 1.54, indicating that their average share price is 54% more volatile than the S&P 500.

Profitability

This table compares Merrimack Pharmaceuticals and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merrimack Pharmaceuticals N/A N/A -68.02%
Merrimack Pharmaceuticals Competitors -4,630.18% -472.52% -43.21%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Merrimack Pharmaceuticals and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merrimack Pharmaceuticals 0 2 0 0 2.00
Merrimack Pharmaceuticals Competitors 547 2494 6734 128 2.65

Merrimack Pharmaceuticals presently has a consensus price target of $15.00, suggesting a potential upside of 45.07%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 18.55%. Given Merrimack Pharmaceuticals’ higher possible upside, research analysts clearly believe Merrimack Pharmaceuticals is more favorable than its rivals.

Earnings and Valuation

This table compares Merrimack Pharmaceuticals and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Merrimack Pharmaceuticals $144.27 million -$151.74 million 0.30
Merrimack Pharmaceuticals Competitors $217.29 million -$39.39 million -74.67

Merrimack Pharmaceuticals’ rivals have higher revenue and earnings than Merrimack Pharmaceuticals. Merrimack Pharmaceuticals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

50.1% of Merrimack Pharmaceuticals shares are owned by institutional investors. Comparatively, 48.2% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 8.5% of Merrimack Pharmaceuticals shares are owned by insiders. Comparatively, 14.5% of shares of all “Biotechnology & Medical Research” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Merrimack Pharmaceuticals rivals beat Merrimack Pharmaceuticals on 7 of the 13 factors compared.

About Merrimack Pharmaceuticals

Merrimack Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in discovering, developing and commercializing medicines consisting of therapeutics paired with companion diagnostics for the treatment of cancer. The Company has one marketed therapeutic oncology product and multiple targeted therapeutic oncology candidates in clinical development. Its advanced program is its therapeutic MM-398, which it markets in the United States under the brand name ONIVYDE. Its other clinical stage product candidates include MM-121, MM-141, MM-310, MM-302 and MM-151. The Company is developing in vitro and in vivo diagnostics for use with each of its oncology therapeutic product candidates. Its in vitro diagnostic agents employ biophysical or biochemical markers of cancer, or biomarkers. Its in vivo diagnostics take the form of imaging agents that may help identify patients likely to benefit from its therapeutic products by measuring deposition of its products in the tumor.

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