Head to Head Survey: Sagimet Biosciences (SGMT) vs. Its Competitors

Sagimet Biosciences (NASDAQ:SGMT) is one of 1,078 public companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its rivals? We will compare Sagimet Biosciences to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Profitability

This table compares Sagimet Biosciences and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sagimet Biosciences	N/A	-23.63%	-22.91%
Sagimet Biosciences Competitors	-3,399.87%	-235.11%	-32.77%

Insider & Institutional Ownership

87.9% of Sagimet Biosciences shares are held by institutional investors. Comparatively, 43.9% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 14.7% of Sagimet Biosciences shares are held by insiders. Comparatively, 13.6% of shares of all “Pharmaceutical preparations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sagimet Biosciences has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Sagimet Biosciences’ rivals have a beta of 4.18, meaning that their average stock price is 318% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sagimet Biosciences and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sagimet Biosciences	0	1	5	0	2.83
Sagimet Biosciences Competitors	8823	22866	51312	1436	2.54

Sagimet Biosciences presently has a consensus target price of $23.17, indicating a potential upside of 290.01%. As a group, “Pharmaceutical preparations” companies have a potential upside of 2,412.86%. Given Sagimet Biosciences’ rivals higher possible upside, analysts clearly believe Sagimet Biosciences has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Sagimet Biosciences and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sagimet Biosciences	$2.00 million	-$27.88 million	-3.38
Sagimet Biosciences Competitors	$9.91 billion	$136.15 million	-5.41

Sagimet Biosciences’ rivals have higher revenue and earnings than Sagimet Biosciences. Sagimet Biosciences 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.

Summary

Sagimet Biosciences beats its rivals on 8 of the 13 factors compared.

Sagimet Biosciences Company Profile

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional metabolic pathways in the United States. The company’s lead drug candidate is Denifanstat, a once-daily pill and selective FASN inhibitor for the treatment of metabolic dysfunction associated steatohepatitis. It also develops TVB-3567, a FASN inhibitor for the treatment of acne; and other oncology programs. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.