Financial Survey: Vanda Pharmaceuticals (VNDA) versus Its Rivals

Vanda Pharmaceuticals (NASDAQ:VNDA) is one of 894 publicly-traded companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its peers? We will compare Vanda Pharmaceuticals to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.

Risk & Volatility

Vanda Pharmaceuticals has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Vanda Pharmaceuticals’ peers have a beta of -3.81, meaning that their average share price is 481% less volatile than the S&P 500.

Insider and Institutional Ownership

88.1% of Vanda Pharmaceuticals shares are owned by institutional investors. Comparatively, 32.7% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 10.7% of Vanda Pharmaceuticals shares are owned by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Vanda Pharmaceuticals and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vanda Pharmaceuticals	$216.10 million	-$220.47 million	-0.90
Vanda Pharmaceuticals Competitors	$3.57 billion	$3.20 billion	552.49

Vanda Pharmaceuticals’ peers have higher revenue and earnings than Vanda Pharmaceuticals. Vanda Pharmaceuticals 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Vanda Pharmaceuticals and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vanda Pharmaceuticals	1	2	6	0	2.56
Vanda Pharmaceuticals Competitors	7776	13772	25741	1037	2.41

Vanda Pharmaceuticals presently has a consensus price target of $13.50, suggesting a potential upside of 225.77%. As a group, “Pharmaceuticals” companies have a potential upside of 24.91%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Vanda Pharmaceuticals is more favorable than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vanda Pharmaceuticals	-119.87%	-62.70%	-37.53%
Vanda Pharmaceuticals Competitors	-2,380.61%	-219.90%	-15.56%

Summary

Vanda Pharmaceuticals beats its peers on 7 of the 13 factors compared.

About Vanda Pharmaceuticals

Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system disorders and other conditions with significant unmet medical needs. Founded in 2003 and headquartered in Washington, D.C., the company primarily serves patients and healthcare providers in the United States, with certain products and commercial rights extending to international markets. Vanda’s marketed products include Hetlioz (tasimelteon), a treatment for Non-24-Hour Sleep-Wake Disorder in totally blind individuals and nighttime sleep disturbances associated with Smith-Magenis syndrome.