Head-To-Head Contrast: Cempra (MLNT) & The Competition

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.

Gross Revenue NetIncome Price/Earnings Ratio
Cempra $18.02 million -$117.96 million -1.27
Cempra Competitors $288.09 million $35.08 million 150.27

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.

Profitability

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

Net Margins Return on Equity Return on Assets
Cempra -500.05% -45.72% -35.83%
Cempra Competitors -5,310.00% -487.10% -42.46%

Analyst Ratings

This is a summary of current recommendations for Cempra and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cempra 2 10 1 0 1.92
Cempra Competitors 791 3132 11435 227 2.71

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.

Summary

Cempra peers beat Cempra on 8 of the 12 factors compared.

About Cempra

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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