Galapagos (NASDAQ: GLPG) is one of 188 publicly-traded companies in the “Biotechnology & Medical Research” industry, but how does it weigh in compared to its peers? We will compare Galapagos to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Galapagos and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galapagos 0 2 6 0 2.75
Galapagos Competitors 539 2442 6663 128 2.65

Galapagos currently has a consensus price target of $115.17, suggesting a potential upside of 26.27%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 13.21%. Given Galapagos’ stronger consensus rating and higher possible upside, analysts plainly believe Galapagos is more favorable than its peers.

Valuation and Earnings

This table compares Galapagos and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Galapagos $165.09 million $59.76 million -99.14
Galapagos Competitors $217.29 million -$39.39 million -61.73

Galapagos’ peers have higher revenue, but lower earnings than Galapagos. Galapagos 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.

Institutional & Insider Ownership

19.7% of Galapagos shares are held by institutional investors. Comparatively, 47.5% of shares of all “Biotechnology & Medical Research” companies are held by institutional investors. 2.9% of Galapagos shares are held by company insiders. Comparatively, 14.5% of shares of all “Biotechnology & Medical Research” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Galapagos -22.26% -4.64% -3.45%
Galapagos Competitors -4,281.12% -563.62% -43.54%

Risk and Volatility

Galapagos has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Galapagos’ peers have a beta of 1.54, suggesting that their average stock price is 54% more volatile than the S&P 500.

Summary

Galapagos beats its peers on 8 of the 12 factors compared.

Galapagos Company Profile

Galapagos NV is a Belgium-based biotechnology company. The Company’s activities are divided into two operating divisions: Research and Development (R & D) and Services. The R & D division is engaged in the discovery and development of small molecules. The Services division, offers target-to-drug discovery products and services to pharmaceutical and biotechnology companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. As of December 31, 2011, Galapagos NV was, through its subsidiaries, active in Belgium, France, Switzerland, the Netherlands, the United Kingdom, Germany, the United States and Croatia. In April 2014, it sold BioFocus and Argenta service division operations to Charles River Laboratories International.

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