Vertex Pharmaceuticals (NASDAQ: VRTX) is one of 282 public companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its rivals? We will compare Vertex Pharmaceuticals to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.

Earnings & Valuation

This table compares Vertex Pharmaceuticals and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Vertex Pharmaceuticals $1.70 billion -$112.05 million 187.89
Vertex Pharmaceuticals Competitors $286.20 million $34.74 million 150.31

Vertex Pharmaceuticals has higher revenue, but lower earnings than its rivals. Vertex Pharmaceuticals 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.

Insider and Institutional Ownership

92.4% of Vertex Pharmaceuticals shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 1.8% of Vertex Pharmaceuticals shares are owned by company insiders. Comparatively, 17.3% of shares of all “Bio Therapeutic Drugs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Vertex Pharmaceuticals has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals’ rivals have a beta of 6.23, suggesting that their average share price is 523% more volatile than the S&P 500.

Profitability

This table compares Vertex Pharmaceuticals and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vertex Pharmaceuticals 8.53% 9.23% 5.01%
Vertex Pharmaceuticals Competitors -5,339.09% -435.51% -40.49%

Analyst Ratings

This is a breakdown of recent recommendations for Vertex Pharmaceuticals and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vertex Pharmaceuticals 0 2 23 0 2.92
Vertex Pharmaceuticals Competitors 809 3174 11492 230 2.71

Vertex Pharmaceuticals presently has a consensus price target of $172.74, suggesting a potential upside of 17.87%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 43.44%. Given Vertex Pharmaceuticals’ rivals higher possible upside, analysts clearly believe Vertex Pharmaceuticals has less favorable growth aspects than its rivals.

Summary

Vertex Pharmaceuticals beats its rivals on 8 of the 13 factors compared.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated is engaged in discovering, developing, manufacturing and commercializing medicines for serious diseases. The Company is focused on developing and commercializing therapies for the treatment of cystic fibrosis (CF) and advancing its research and development programs in other indications. The Company’s marketed medicines are ORKAMBI and KALYDECO. ORKAMBI (lumacaftor in combination with ivacaftor) is approved as a treatment for patients having two copies (homozygous) of the Delta-F508 (F508del) mutation in their cystic fibrosis transmembrane conductance regulator (CFTR) gene. KALYDECO (ivacaftor) is approved for the treatment of CF patients having the G551D mutation or other specified mutations in their CFTR gene. The Company’s development programs in the field of CF include Tezacaftor (VX-661), VX-152, VX-440, VX-659, VX-445 and VX-371. VX-152, VX-440, VX-659 and VX-445 are CFTR corrector compounds.

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