Cambrex (CBM) and Its Competitors Critical Analysis

Cambrex (NYSE: CBM) is one of 104 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Cambrex to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Cambrex 18.79% 23.42% 16.19%
Cambrex Competitors -2,368.84% -77.34% -7.54%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Cambrex $490.64 million $81.67 million 16.07
Cambrex Competitors $8.17 billion $1.09 billion 143.92

Cambrex’s competitors have higher revenue and earnings than Cambrex. Cambrex 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cambrex and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex 0 0 3 0 3.00
Cambrex Competitors 871 3792 6769 180 2.54

Cambrex currently has a consensus price target of $62.33, indicating a potential upside of 29.32%. As a group, “Pharmaceuticals” companies have a potential upside of 23.74%. Given Cambrex’s stronger consensus rating and higher probable upside, analysts plainly believe Cambrex is more favorable than its competitors.

Insider and Institutional Ownership

44.8% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 2.5% of Cambrex shares are owned by insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Cambrex has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Cambrex’s competitors have a beta of 36.42, suggesting that their average share price is 3,542% more volatile than the S&P 500.

Summary

Cambrex competitors beat Cambrex on 7 of the 13 factors compared.

Cambrex Company Profile

Cambrex Corporation (Cambrex) is a life sciences company. It provides products and services for the development and commercialization of generic therapeutics. It operates through four segments, which are manufacturing facilities that have been aggregated as a single segment. Its manufacturing facilities are owned by the subsidiaries, including Cambrex Charles City, Inc., Cambrex Karlskoga AB and Cambrex Profarmaco Milano S.r.l. Its products consist of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. It delivers services, such as custom organic synthesis and process development; current good manufacturing practices (cGMP) manufacturing of API and intermediates from grams to hundreds of kilograms; cGMP analytical services; controlled substance research and development (R&D) and manufacture, Schedule II-V, and contract research. It has API R&D and cGMP facilities in the United States and Europe. It supplies over 90 generic APIs.

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