Critical Analysis: Galmed Pharmaceuticals (GLMD) versus Its Competitors

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

Profitability

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

Net Margins Return on Equity Return on Assets
Galmed Pharmaceuticals -1,242.49% -167.83% -110.52%
Galmed Pharmaceuticals Competitors -5,311.45% -218.34% -39.53%

Institutional and Insider Ownership

9.9% of Galmed Pharmaceuticals shares are held by institutional investors. Comparatively, 50.2% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 16.6% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Galmed Pharmaceuticals has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, Galmed Pharmaceuticals’ competitors have a beta of 8.40, indicating that their average share price is 740% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Galmed Pharmaceuticals and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galmed Pharmaceuticals 0 0 4 0 3.00
Galmed Pharmaceuticals Competitors 858 3204 11628 231 2.71

Galmed Pharmaceuticals currently has a consensus price target of $20.75, indicating a potential upside of 152.13%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 44.26%. Given Galmed Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Galmed Pharmaceuticals is more favorable than its competitors.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Galmed Pharmaceuticals $470,000.00 -$16.95 million -7.41
Galmed Pharmaceuticals Competitors $284.28 million $33.78 million 74.48

Galmed Pharmaceuticals’ competitors have higher revenue and earnings than Galmed Pharmaceuticals. Galmed Pharmaceuticals 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.

Summary

Galmed Pharmaceuticals competitors beat Galmed Pharmaceuticals on 7 of the 12 factors compared.

About Galmed Pharmaceuticals

Galmed Pharmaceuticals Ltd. is a clinical-stage biopharmaceutical company. The Company focuses on the development and commercialization of once-daily, oral therapy for the treatment of liver diseases and cholesterol gallstones utilizing its synthetic fatty-acid/bile-acid conjugate (FABAC), called aramchol. Its product candidate, aramchol, is a disease modifying treatment for fatty liver disorders, including Non-Alcoholic Steato-hepatitis (NASH). The Company’s Aramchol is a conjugate of cholic acid and arachidic acid, which is a member of synthetic Fatty-Acid/Bile-Acid Conjugates (FABACs). FABACs are composed of endogenic compounds. Aramchol affects liver fat metabolism and has been shown in a Phase IIa clinical study to reduce liver fat content, as well as improve metabolic parameters associated with Nonalcoholic steatohepatitis (NASH). Aramchol is in Phase IIb clinical trials.

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