Head to Head Comparison: Vertex Pharmaceuticals (VRTX) vs. Its Peers

Vertex Pharmaceuticals (NASDAQ: VRTX) is one of 286 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its rivals? We will compare Vertex Pharmaceuticals to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

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 -5,226.85% -213.68% -38.94%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Vertex Pharmaceuticals $1.70 billion -$112.05 million 193.08
Vertex Pharmaceuticals Competitors $284.49 million $34.10 million 67.35

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.

Analyst Ratings

This is a summary of recent ratings for Vertex Pharmaceuticals and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vertex Pharmaceuticals 0 2 24 0 2.92
Vertex Pharmaceuticals Competitors 884 3271 11759 235 2.70

Vertex Pharmaceuticals presently has a consensus target price of $172.83, suggesting a potential upside of 14.76%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 43.61%. Given Vertex Pharmaceuticals’ rivals higher probable upside, analysts clearly believe Vertex Pharmaceuticals has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

93.1% of Vertex Pharmaceuticals shares are owned by institutional investors. Comparatively, 49.9% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 1.8% of Vertex Pharmaceuticals shares are owned by insiders. Comparatively, 16.9% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Vertex Pharmaceuticals has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals’ rivals have a beta of 8.25, meaning that their average share price is 725% more volatile than the S&P 500.

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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