Ra Pharmaceuticals (NASDAQ: RARX) is one of 286 public companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its competitors? We will compare Ra Pharmaceuticals to similar businesses based on the strength of its profitability, institutional ownership, valuation, dividends, analyst recommendations, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Ra Pharmaceuticals N/A -49.83% -45.57%
Ra Pharmaceuticals Competitors -5,321.87% -212.93% -39.55%

Volatility and Risk

Ra Pharmaceuticals has a beta of 4.75, meaning that its stock price is 375% more volatile than the S&P 500. Comparatively, Ra Pharmaceuticals’ competitors have a beta of 0.40, meaning that their average stock price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ra Pharmaceuticals and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ra Pharmaceuticals 0 0 4 0 3.00
Ra Pharmaceuticals Competitors 864 3216 11668 232 2.71

Ra Pharmaceuticals presently has a consensus target price of $25.00, suggesting a potential upside of 210.17%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 45.20%. Given Ra Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Ra Pharmaceuticals is more favorable than its competitors.

Valuation & Earnings

This table compares Ra Pharmaceuticals and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ra Pharmaceuticals $4.93 million -$28.86 million -3.26
Ra Pharmaceuticals Competitors $284.49 million $33.78 million 82.99

Ra Pharmaceuticals’ competitors have higher revenue and earnings than Ra Pharmaceuticals. Ra Pharmaceuticals 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.

Insider and Institutional Ownership

69.6% of Ra Pharmaceuticals shares are owned by institutional investors. Comparatively, 50.3% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 14.5% of Ra Pharmaceuticals shares are owned by insiders. Comparatively, 17.0% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Ra Pharmaceuticals beats its competitors on 7 of the 12 factors compared.

About Ra Pharmaceuticals

Ra Pharmaceuticals, Inc. is a United States-based clinical-stage biopharmaceutical company. The Company focuses on the development of therapeutics for diseases of complement dysregulation and a range of orphan indications. It utilizes small molecules and peptide approaches to address pathological targets in the complement cascade. It has leveraged the Extreme Diversity peptide chemistry platform to develop a portfolio of products that selectively inhibit the complement system and other immune targets. Its main program, RA101495, is a macrocyclic peptide inhibitor of complement component 5 (C5), which is in Phase I stage of development for the treatment of paroxysmal nocturnal hemoglobinuria (PNH). RA101495 binds a site on the C5 protein to inhibit cleavage into C5a and C5b, thereby preventing red blood cell lysis by inhibiting the production and assembly of the membrane attack complex (MAC). RA101495 is being developed as an alternative to eculizumab therapy for patients with PNH.

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