Analyzing Verastem (VSTM) and Its Peers

Verastem (NASDAQ: VSTM) is one of 287 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its peers? We will compare Verastem to similar businesses based on the strength of its valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Verastem and its peers’ 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 -5,384.48% -160.51% -35.25%

Analyst Ratings

This is a summary of current ratings and recommmendations for Verastem and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verastem 0 1 7 0 2.88
Verastem Competitors 930 3376 11882 239 2.70

Verastem presently has a consensus target price of $10.64, indicating a potential upside of 264.48%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 42.54%. Given Verastem’s stronger consensus rating and higher possible upside, analysts plainly believe Verastem is more favorable than its peers.

Insider & Institutional Ownership

28.7% of Verastem shares are owned by institutional investors. Comparatively, 49.8% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 6.5% of Verastem shares are owned by insiders. Comparatively, 16.8% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Verastem N/A -$36.44 million -1.78
Verastem Competitors $290.27 million $35.99 million 53.67

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

Volatility & Risk

Verastem has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Verastem’s peers have a beta of 2.46, indicating that their average share price is 146% more volatile than the S&P 500.

Summary

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

About Verastem

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.

Receive News & Ratings for Verastem Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Verastem and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply