Head to Head Review: Aceto Corporation (ACET) versus Its Rivals

Aceto Corporation (NASDAQ: ACET) is one of 116 public companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare Aceto Corporation to similar businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Aceto Corporation 1.78% 10.21% 4.20%
Aceto Corporation Competitors -2,859.67% -63.49% -9.24%

Volatility and Risk

Aceto Corporation has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Aceto Corporation’s rivals have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Aceto Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aceto Corporation $638.32 million $68.18 million 30.77
Aceto Corporation Competitors $8.20 billion $2.68 billion -0.84

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

Institutional and Insider Ownership

82.2% of Aceto Corporation shares are held by institutional investors. Comparatively, 43.7% of shares of all “Pharmaceuticals” companies are held by institutional investors. 4.1% of Aceto Corporation shares are held by company insiders. Comparatively, 11.8% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aceto Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aceto Corporation 0 2 1 0 2.33
Aceto Corporation Competitors 836 3745 6771 185 2.55

Aceto Corporation presently has a consensus price target of $18.00, indicating a potential upside of 67.13%. As a group, “Pharmaceuticals” companies have a potential upside of 28.21%. Given Aceto Corporation’s higher possible upside, equities research analysts plainly believe Aceto Corporation is more favorable than its rivals.

Dividends

Aceto Corporation pays an annual dividend of $0.26 per share and has a dividend yield of 2.4%. Aceto Corporation pays out 74.3% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 69.6% of their earnings in the form of a dividend. Aceto Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Aceto Corporation rivals beat Aceto Corporation on 8 of the 15 factors compared.

Aceto Corporation Company Profile

Aceto Corporation (Aceto) is engaged in the marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products. The Company’s business is organized along product lines into three segments: Human Health, Pharmaceutical Ingredients and Performance Chemicals. As of June 30, 2016, it distributed over 1,100 chemical compounds used primarily as finished products or raw materials in the agricultural, coatings and industrial chemical industries. The Human Health segment includes finished dosage form generic drugs and nutraceutical products. As of June 30, 2016, the Pharmaceutical Ingredients segment had two product groups: Active Pharmaceutical Ingredients and Pharmaceutical Intermediates. The Performance Chemicals segment includes specialty chemicals and agricultural protection products.

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