Aradigm Corporation (NASDAQ: ARDM) is one of 292 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its rivals? We will compare Aradigm Corporation to similar companies based on the strength of its earnings, risk, institutional ownership, analyst recommendations, valuation, dividends and profitability.

Valuation & Earnings

This table compares Aradigm Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aradigm Corporation $9.54 million -$14.99 million -3.31
Aradigm Corporation Competitors $473.27 million $171.89 million -6.94

Aradigm Corporation’s rivals have higher revenue and earnings than Aradigm Corporation. Aradigm Corporation 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.

Profitability

This table compares Aradigm Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aradigm Corporation -196.65% -665.03% -83.01%
Aradigm Corporation Competitors -4,782.79% -355.20% -43.61%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aradigm Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aradigm Corporation 0 0 1 0 3.00
Aradigm Corporation Competitors 1400 4543 12418 314 2.62

Aradigm Corporation presently has a consensus target price of $10.00, indicating a potential upside of 138.10%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 32.09%. Given Aradigm Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Aradigm Corporation is more favorable than its rivals.

Institutional and Insider Ownership

33.6% of Aradigm Corporation shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 7.3% of Aradigm Corporation shares are owned by company insiders. Comparatively, 16.9% of shares of all “Bio Therapeutic Drugs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Aradigm Corporation has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Aradigm Corporation’s rivals have a beta of 6.57, meaning that their average share price is 557% more volatile than the S&P 500.

Summary

Aradigm Corporation rivals beat Aradigm Corporation on 8 of the 12 factors compared.

About Aradigm Corporation

Aradigm Corporation is a pharmaceutical company focused on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. The Company’s lead product candidate is Pulmaquin inhaled ciprofloxacin, which is in Phase III clinical trials. It offers AERx pulmonary drug delivery platform and other technologies. Its partnered programs under development include Inhaled Ciprofloxacin. It is also engaged in developing Smoking Cessation Therapy (ARD-1600 Inhaled Nicotine). Its lead development candidates are its formulations of the potent antibiotic ciprofloxacin (Pulmaquin (ARD-3150) and Lipoquin (ARD-3100)) that are delivered by inhalation for the management of infections associated with the severe respiratory diseases, such as cystic fibrosis (CF) and non-cystic fibrosis bronchiectasis (BE). Pulmaquin uses slow release liposomal formulation (Lipoquin) mixed with a small amount of ciprofloxacin dissolved in an aqueous medium.

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