Verastem (VSTM) vs. Its Competitors Head-To-Head Contrast

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

Institutional and Insider Ownership

34.2% of Verastem shares are owned by institutional investors. Comparatively, 50.1% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 6.5% of Verastem shares are owned by insiders. Comparatively, 17.3% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Verastem has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Verastem’s competitors have a beta of 8.49, meaning that their average share price is 749% more volatile than the S&P 500.

Valuation and Earnings

This table compares Verastem and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Verastem N/A -$36.44 million -1.82
Verastem Competitors $284.49 million $34.10 million 73.34

Verastem’s competitors have higher revenue and earnings than Verastem. Verastem 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 target prices for Verastem and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verastem 0 1 7 0 2.88
Verastem Competitors 882 3256 11745 235 2.70

Verastem currently has a consensus price target of $10.64, indicating a potential upside of 255.95%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 43.63%. Given Verastem’s stronger consensus rating and higher possible upside, analysts plainly believe Verastem is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Verastem N/A -110.32% -85.98%
Verastem Competitors -5,316.15% -218.61% -39.85%

Summary

Verastem competitors beat Verastem on 8 of the 13 factors compared.

Verastem Company Profile

Verastem, Inc. is a biopharmaceutical company. The Company is focused on discovering and developing drugs to improve outcomes for patients with cancer. The Company operates in the segment of developing drugs for the treatment of cancer. The Company’s advanced product candidates are VS 6063, VS 4718 and VS 5584. The Company’s programs target the Focal Adhesion Kinase (FAK) and the PI3K/mTOR signaling pathways. FAK is a non-receptor tyrosine kinase encoded by the PTK-2 gene that is involved in cellular adhesion and, in cancer, metastatic capability. The Company’s VS-6063 (defactinib) and VS 4718 are orally available small molecule compounds designed to inhibit FAK signaling. The Company’s VS-5584 is an orally available small molecule that inhibits both mTORC1/2 and PI3K signaling. The Company is engaged in running clinical trials in cancers where there are limited treatment options, including lung, ovarian, lymphoma, pancreatic and other advanced cancers.

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