Financial Analysis: Catalent (CTLT) vs. Its Peers

Catalent (NYSE: CTLT) is one of 104 public companies in the “Pharmaceuticals” industry, but how does it compare to its rivals? We will compare Catalent to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Catalent and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Catalent $2.08 billion $109.80 million 48.87
Catalent Competitors $8.31 billion $1.11 billion 159.09

Catalent’s rivals have higher revenue and earnings than Catalent. Catalent 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 & Insider Ownership

99.4% of Catalent shares are held by institutional investors. Comparatively, 44.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 1.7% of Catalent shares are held by insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Catalent has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Catalent’s rivals have a beta of 37.68, meaning that their average share price is 3,668% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Catalent 5.01% 23.97% 5.24%
Catalent Competitors -2,431.51% -65.11% -7.90%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Catalent and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catalent 0 3 6 0 2.67
Catalent Competitors 902 3893 6882 183 2.54

Catalent currently has a consensus price target of $44.00, suggesting a potential upside of 4.69%. As a group, “Pharmaceuticals” companies have a potential upside of 19.35%. Given Catalent’s rivals higher possible upside, analysts clearly believe Catalent has less favorable growth aspects than its rivals.

Summary

Catalent rivals beat Catalent on 7 of the 13 factors compared.

Catalent Company Profile

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its segments include Softgel Technologies, Drug Delivery Solutions and Clinical Supply Services. The Softgel Technologies segment is engaged in the formulation, development and manufacturing of prescription and consumer health soft capsules or softgels. The Drug Delivery Solutions segment is engaged in the formulation, development and manufacturing of prescription and consumer and animal health products; blow-fill seal unit dose manufacturing; biologic cell line development; analytical and bioanalytical development, and testing services. The Clinical Supply Services segment is engaged in manufacturing, packaging, labeling, storage, distribution and inventory management for clinical trials of drugs and biologics for patient kits; FastChain clinical supply service; clinical e-solutions and informatics, and global comparator sourcing services.

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