Head-To-Head Comparison: Foundation Medicine (FMI) versus The Competition

Foundation Medicine (NASDAQ: FMI) is one of 212 publicly-traded companies in the “Biotechnology & Medical Research” industry, but how does it weigh in compared to its competitors? We will compare Foundation Medicine to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Volatility and Risk

Foundation Medicine has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500. Comparatively, Foundation Medicine’s competitors have a beta of 1.54, meaning that their average stock price is 54% more volatile than the S&P 500.

Earnings and Valuation

This table compares Foundation Medicine and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Foundation Medicine $116.86 million -$113.19 million -12.39
Foundation Medicine Competitors $220.75 million -$39.68 million -63.33

Foundation Medicine’s competitors have higher revenue and earnings than Foundation Medicine. Foundation Medicine is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Foundation Medicine and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foundation Medicine -119.69% -143.18% -93.58%
Foundation Medicine Competitors -3,960.65% -121.01% -43.99%

Insider and Institutional Ownership

32.8% of Foundation Medicine shares are held by institutional investors. Comparatively, 48.6% of shares of all “Biotechnology & Medical Research” companies are held by institutional investors. 2.7% of Foundation Medicine shares are held by company insiders. Comparatively, 14.0% of shares of all “Biotechnology & Medical Research” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Foundation Medicine and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foundation Medicine 0 1 2 0 2.67
Foundation Medicine Competitors 490 2378 6455 122 2.66

Foundation Medicine presently has a consensus target price of $35.00, suggesting a potential downside of 36.80%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 14.01%. Given Foundation Medicine’s competitors higher probable upside, analysts plainly believe Foundation Medicine has less favorable growth aspects than its competitors.

Summary

Foundation Medicine competitors beat Foundation Medicine on 10 of the 12 factors compared.

Foundation Medicine Company Profile

Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).

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