Reviewing Cambrex (NYSE:CBM) and Insmed (NYSE:INSM)

Cambrex (NYSE:CBM) and Insmed (NASDAQ:INSM) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Cambrex and Insmed, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex 0 4 1 0 2.20
Insmed 0 1 5 0 2.83

Cambrex currently has a consensus target price of $52.40, indicating a potential downside of 12.20%. Insmed has a consensus target price of $38.00, indicating a potential upside of 108.56%. Given Insmed’s stronger consensus rating and higher probable upside, analysts clearly believe Insmed is more favorable than Cambrex.

Profitability

This table compares Cambrex and Insmed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambrex 9.41% 8.20% 3.97%
Insmed N/A -126.95% -47.66%

Risk & Volatility

Cambrex has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500. Comparatively, Insmed has a beta of 2.97, suggesting that its share price is 197% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cambrex and Insmed’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cambrex $532.09 million 3.78 $92.41 million $2.77 21.55
Insmed $9.84 million 165.18 -$324.28 million ($4.17) -4.37

Cambrex has higher revenue and earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than Cambrex, indicating that it is currently the more affordable of the two stocks.

Summary

Cambrex beats Insmed on 7 of the 12 factors compared between the two stocks.

Cambrex Company Profile

Cambrex Corporation, a life sciences company, provides various products and services for the development and commercialization of new and generic therapeutics worldwide. Its products comprise active pharmaceutical ingredients and pharmaceutical intermediates that are used in the production of prescription and over-the-counter drug products, as well as finished dosage forms. The company serves generic drug companies; and companies that discover and commercialize small molecule human therapeutics. The company sells its products directly, as well as through independent agents. Cambrex Corporation was founded in 1981 and is headquartered in East Rutherford, New Jersey.

Insmed Company Profile

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.

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