Reata Pharmaceuticals (RETA) & Its Competitors Financial Analysis

Reata Pharmaceuticals (NASDAQ: RETA) is one of 295 public companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its rivals? We will compare Reata Pharmaceuticals to related businesses based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, dividends and valuation.

Risk and Volatility

Reata Pharmaceuticals has a beta of -2.17, suggesting that its share price is 317% less volatile than the S&P 500. Comparatively, Reata Pharmaceuticals’ rivals have a beta of 6.66, suggesting that their average share price is 566% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Reata Pharmaceuticals -46.89% N/A -27.08%
Reata Pharmaceuticals Competitors -5,519.74% -455.05% -43.62%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reata Pharmaceuticals 0 0 8 0 3.00
Reata Pharmaceuticals Competitors 765 3038 11188 227 2.71

Reata Pharmaceuticals currently has a consensus target price of $54.71, suggesting a potential upside of 83.30%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 38.12%. Given Reata Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Reata Pharmaceuticals is more favorable than its rivals.

Valuation and Earnings

This table compares Reata Pharmaceuticals and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Reata Pharmaceuticals $50.09 million -$22.97 million -27.90
Reata Pharmaceuticals Competitors $260.16 million $66.28 million -6.45

Reata Pharmaceuticals’ rivals have higher revenue and earnings than Reata Pharmaceuticals. Reata Pharmaceuticals 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.

Institutional and Insider Ownership

15.6% of Reata Pharmaceuticals shares are held by institutional investors. Comparatively, 50.3% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 62.4% of Reata Pharmaceuticals shares are held by insiders. Comparatively, 16.8% 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 stock will outperform the market over the long term.

Summary

Reata Pharmaceuticals beats its rivals on 7 of the 12 factors compared.

Reata Pharmaceuticals Company Profile

Reata Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing and commercializing product candidates that modulate the activity of regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a range of serious or life-threatening diseases. The Company’s lead product candidates include bardoxolone methyl, which is being studied in Phase III trial for the treatment of pulmonary arterial hypertension (PAH), associated with connective tissue disease (CTD-PAH), as well as a Phase II trial for the treatment of pulmonary hypertension due to interstitial lung disease (PH-ILD), and PAH, each of which are subsets of pulmonary hypertension (PH), Omaveloxolone, which is in Phase II clinical development for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma.

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