Critical Analysis: Cambrex (CBM) vs. Its Rivals

Cambrex (NYSE: CBM) is one of 98 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Cambrex to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

43.9% 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, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Cambrex $490.64 million $81.67 million 16.43
Cambrex Competitors $8.17 billion $1.09 billion 114.17

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

Profitability

This table compares Cambrex and its peers’ 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 -2,728.60% -61.45% -7.94%

Risk and Volatility

Cambrex has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500. Comparatively, Cambrex’s peers have a beta of 37.24, suggesting that their average stock price is 3,624% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cambrex and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex 0 0 3 0 3.00
Cambrex Competitors 855 3689 6535 181 2.54

Cambrex presently has a consensus target price of $62.33, suggesting a potential upside of 24.42%. As a group, “Pharmaceuticals” companies have a potential upside of 19.07%. Given Cambrex’s stronger consensus rating and higher possible upside, research analysts clearly believe Cambrex is more favorable than its peers.

Summary

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

About Cambrex

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.

Receive News & Ratings for Cambrex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cambrex and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit