Financial Analysis: Cumberland Pharmaceuticals (CPIX) versus Its Rivals

Cumberland Pharmaceuticals (NASDAQ:CPIX) is one of 894 public companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Cumberland Pharmaceuticals to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Profitability

This table compares Cumberland Pharmaceuticals and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-34.40%	-28.81%	-9.25%
Cumberland Pharmaceuticals Competitors	-2,380.61%	-219.90%	-15.56%

Analyst Ratings

This is a summary of recent ratings and target prices for Cumberland Pharmaceuticals and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
Cumberland Pharmaceuticals Competitors	7776	13768	25735	1036	2.41

As a group, “Pharmaceuticals” companies have a potential upside of 25.18%. Given Cumberland Pharmaceuticals’ peers stronger consensus rating and higher probable upside, analysts clearly believe Cumberland Pharmaceuticals has less favorable growth aspects than its peers.

Volatility & Risk

Cumberland Pharmaceuticals has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals’ peers have a beta of -3.81, suggesting that their average share price is 481% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cumberland Pharmaceuticals and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cumberland Pharmaceuticals	$44.52 million	-$2.84 million	-7.46
Cumberland Pharmaceuticals Competitors	$3.57 billion	$3.20 billion	553.76

Cumberland Pharmaceuticals’ peers have higher revenue and earnings than Cumberland Pharmaceuticals. Cumberland Pharmaceuticals 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.

Institutional and Insider Ownership

15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. Comparatively, 32.7% of shares of all “Pharmaceuticals” companies are held by institutional investors. 42.1% of Cumberland Pharmaceuticals shares are held by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Cumberland Pharmaceuticals peers beat Cumberland Pharmaceuticals on 8 of the 13 factors compared.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company headquartered in Nashville, Tennessee. The company develops, acquires and commercializes prescription medicines, with a focus on products that address unmet needs in critical care, gastroenterology, pain management and other specialty areas. Its portfolio has included Caldolor (ibuprofen injection), Acetadote (acetylcysteine injection), Kristalose (lactulose for oral solution), Vaprisol (conivaptan hydrochloride injection) and Omeclamox-Pak, a treatment for certain Helicobacter pylori infections.