Cempra (NASDAQ: MLNT) is one of 306 public companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its peers? We will compare Cempra to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, risk, earnings and analyst recommendations.
Risk & Volatility
Cempra has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Cempra’s peers have a beta of 5.91, indicating that their average share price is 491% more volatile than the S&P 500.
Insider & Institutional Ownership
49.4% of Cempra shares are owned by institutional investors. Comparatively, 50.0% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 17.8% of Cempra shares are owned by insiders. Comparatively, 17.0% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cempra and its peers revenue, earnings per share and valuation.
Cempra’s peers have higher revenue and earnings than Cempra. Cempra 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.
This table compares Cempra and its peers’ net margins, return on equity and return on assets.
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This is a summary of current recommendations for Cempra and its peers, as provided by MarketBeat.com.
||Strong Buy Ratings
Cempra presently has a consensus price target of $6.46, suggesting a potential downside of 46.16%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 41.29%. Given Cempra’s peers stronger consensus rating and higher possible upside, analysts clearly believe Cempra has less favorable growth aspects than its peers.
Cempra peers beat Cempra on 8 of the 12 factors compared.
Melinta Therapeutics, Inc., formerly Cempra, Inc., is a clinical-stage pharmaceutical company. The Company focuses on developing differentiated antibiotics for the acute care and community settings to meet medical needs in the treatment of bacterial infectious diseases. Its product, solithromycin (CEM-101), which is a macrolide and fluoroketolide, is being developed in oral capsules, intravenous (IV) and suspension formulations for the treatment of community-acquired bacterial pneumonia (CABP). Solithromycin has therapeutic potential and activity to target pathogenic bacteria. It has completed two pivotal Phase III trials for solithromycin to treat CABP, as of December 31, 2016. Its Fusidic acid is an antibiotic and the Company is exploring its use for the long-term oral treatment for refractory bone and joint infections (BJI), including prosthetic joint infections, which are caused by staphylococci, including S. aureus, methicillin-resistant S. aureus and other gram-positive bacteria.
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