Cempra (NASDAQ: MLNT) is one of 298 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its competitors? We will compare Cempra to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Earnings and Valuation

This table compares Cempra and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cempra $18.02 million -$117.96 million -1.31
Cempra Competitors $290.00 million $35.57 million 153.40

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cempra -500.05% -45.72% -35.83%
Cempra Competitors -5,084.17% -415.56% -40.53%

Volatility and Risk

Cempra has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Cempra’s competitors have a beta of 5.88, meaning that their average stock price is 488% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cempra and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cempra 2 10 1 0 1.92
Cempra Competitors 790 3130 11389 228 2.71

Cempra presently has a consensus target price of $6.46, suggesting a potential downside of 47.68%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 42.43%. Given Cempra’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Cempra has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

50.4% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 17.8% of Cempra shares are held by insiders. Comparatively, 16.5% of shares of all “Bio Therapeutic Drugs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Cempra competitors beat Cempra on 8 of the 12 factors compared.

About Cempra

Melinta Therapeutics, Inc., formerly Cempra, Inc., is a clinical-stage pharmaceutical company. The Company focuses on developing differentiated antibiotics for the acute care and community settings to meet medical needs in the treatment of bacterial infectious diseases. Its product, solithromycin (CEM-101), which is a macrolide and fluoroketolide, is being developed in oral capsules, intravenous (IV) and suspension formulations for the treatment of community-acquired bacterial pneumonia (CABP). Solithromycin has therapeutic potential and activity to target pathogenic bacteria. It has completed two pivotal Phase III trials for solithromycin to treat CABP, as of December 31, 2016. Its Fusidic acid is an antibiotic and the Company is exploring its use for the long-term oral treatment for refractory bone and joint infections (BJI), including prosthetic joint infections, which are caused by staphylococci, including S. aureus, methicillin-resistant S. aureus and other gram-positive bacteria.

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