Indivior (INDV) vs. Its Peers Critical Review

Indivior (NASDAQ:INDV) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare Indivior to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Volatility & Risk

Indivior has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Indivior’s peers have a beta of -3.77, suggesting that their average stock price is 477% less volatile than the S&P 500.

Earnings and Valuation

This table compares Indivior and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Indivior	$1.37 billion	$210.00 million	7.88
Indivior Competitors	$3.53 billion	$3.15 billion	552.58

Indivior’s peers have higher revenue and earnings than Indivior. Indivior is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

60.3% of Indivior shares are owned by institutional investors. Comparatively, 32.6% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.7% of Indivior shares are owned by insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Indivior and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Indivior	32.75%	-418.04%	42.96%
Indivior Competitors	-2,381.34%	-218.59%	-15.77%

Analyst Ratings

This is a summary of recent recommendations for Indivior and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Indivior	0	1	4	1	3.00
Indivior Competitors	7798	13891	25790	1038	2.41

Indivior currently has a consensus target price of $46.40, suggesting a potential upside of 64.48%. As a group, “Pharmaceuticals” companies have a potential upside of 24.91%. Given Indivior’s stronger consensus rating and higher probable upside, research analysts clearly believe Indivior is more favorable than its peers.

Summary

Indivior beats its peers on 8 of the 13 factors compared.

Indivior Company Profile

Indivior PLC, together with its subsidiaries, engages in the development, manufacture, and sale of buprenorphine-based prescription drugs for the treatment of opioid dependence and co-occurring disorders in the United States, the United Kingdom, and internationally. The company develops medicines to treat substance use disorders, serious mental illnesses, and opioid overdose. Its core marketed products include SUBLOCADE and SUBUTEX PRO buprenorphine extended-release monthly injections; SUBOXONE, a buprenorphine and naloxone sublingual film; SUBOXONE, a buprenorphine and naloxone sublingual tablet; and SUBUTEX, a buprenorphine sublingual tablet for the treatment of opioid use disorder. The company also offers OPVEE nasal spray for opioid overdose reversal; and PERSERIS extended-release injectable suspension for the treatment of schizophrenia in adults. In addition, it is developing INDV-2000, a selective orexin-1 receptor antagonist that completed phase 1 clinical trial for the treatment of opioid use disorder (OUD); INDV-1000, a selective GABAb positive allosteric modulator, which is in pre-clinical development phase for the treatment of alcohol use disorder in collaboration with ADDEX therapeutics; INDV-6001, a buprenorphine-based long-acting injectable for the treatment of OUD in collaboration with Alar Pharmaceuticals Inc.; and CT-102, a digital therapeutic for the treatment of OUD in collaboration with Click Therapeutics. Further, the company is developing INDV-5004, a drinabant injection to treat acute cannabinoid overdose. It has a strategic partnership with Aelis Farma to develop AEF0117, a synthetic CB1 specific signaling inhibitor that is in phase 2B clinical trial for the treatment of cannabis use disorder. The company was incorporated in 2014 and is headquartered in North Chesterfield, Virginia.