Financial Analysis: TESARO (TSRO) and Its Competitors

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

Profitability

This table compares TESARO and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TESARO -251.22% -93.39% -61.53%
TESARO Competitors -5,311.45% -218.34% -39.53%

Insider & Institutional Ownership

50.2% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 40.5% of TESARO shares are held by insiders. Comparatively, 16.6% of shares of all “Bio Therapeutic Drugs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
TESARO $44.82 million -$387.47 million -10.00
TESARO Competitors $284.28 million $33.78 million 74.54

TESARO’s rivals have higher revenue and earnings than TESARO. TESARO is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

TESARO has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, TESARO’s rivals have a beta of 0.54, suggesting that their average share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TESARO and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TESARO 0 9 14 0 2.61
TESARO Competitors 857 3201 11604 231 2.71

TESARO currently has a consensus price target of $158.57, suggesting a potential upside of 87.90%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 42.67%. Given TESARO’s higher possible upside, equities analysts clearly believe TESARO is more favorable than its rivals.

Summary

TESARO rivals beat TESARO on 7 of the 12 factors compared.

About TESARO

TESARO, Inc. is an oncology-focused biopharmaceutical company. The Company operates through the business of developing and commercializing of oncology-focused therapeutics segment. It is developing oncology-related product candidates, including rolapitant, niraparib and the product candidates under its immuno-oncology platform. Rolapitant is a potent and long-acting neurokinin-1 receptor antagonist for the prevention of chemotherapy induced nausea and vomiting. Niraparib is an orally active and potent poly (adenosine diphosphate (ADP)-ribose) polymerase inhibitor. It has various ongoing clinical trials evaluating niraparib for the treatment of ovarian or breast cancers. It has initiated a Phase I, dose escalation study for its first immuno-oncology antibody, TSR-042, which targets Programmed cell death protein 1. It has commenced pre-clinical research for its antibody candidate targeting Lymphocyte-activation gene-3 andTSR-033. It has commenced a Phase I clinical trial of TSR-042.

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