Verastem (NASDAQ: VSTM) is one of 286 public companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its peers? We will compare Verastem to related companies based on the strength of its analyst recommendations, profitability, risk, dividends, valuation, earnings and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Verastem N/A -110.32% -85.98%
Verastem Competitors -5,993.97% -219.09% -39.48%

Institutional and Insider Ownership

34.2% of Verastem shares are held by institutional investors. Comparatively, 50.0% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 6.5% of Verastem shares are held by company insiders. Comparatively, 17.1% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Verastem and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verastem 0 1 7 0 2.88
Verastem Competitors 866 3223 11693 232 2.71

Verastem currently has a consensus price target of $10.93, suggesting a potential upside of 248.04%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 47.20%. Given Verastem’s stronger consensus rating and higher possible upside, equities analysts clearly believe Verastem is more favorable than its peers.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Verastem N/A -$36.44 million -1.91
Verastem Competitors $284.49 million $33.78 million 75.03

Verastem’s peers have higher revenue and earnings than Verastem. Verastem 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.

Risk and Volatility

Verastem has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Verastem’s peers have a beta of 8.49, indicating that their average share price is 749% more volatile than the S&P 500.

Summary

Verastem peers beat Verastem on 7 of the 12 factors compared.

About Verastem

Verastem, Inc. is a biopharmaceutical company. The Company is focused on discovering and developing drugs to improve outcomes for patients with cancer. The Company operates in the segment of developing drugs for the treatment of cancer. The Company’s advanced product candidates are VS 6063, VS 4718 and VS 5584. The Company’s programs target the Focal Adhesion Kinase (FAK) and the PI3K/mTOR signaling pathways. FAK is a non-receptor tyrosine kinase encoded by the PTK-2 gene that is involved in cellular adhesion and, in cancer, metastatic capability. The Company’s VS-6063 (defactinib) and VS 4718 are orally available small molecule compounds designed to inhibit FAK signaling. The Company’s VS-5584 is an orally available small molecule that inhibits both mTORC1/2 and PI3K signaling. The Company is engaged in running clinical trials in cancers where there are limited treatment options, including lung, ovarian, lymphoma, pancreatic and other advanced cancers.

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