Critical Comparison: Galmed Pharmaceuticals (NASDAQ:GLMD) and Its Competitors

Galmed Pharmaceuticals (NASDAQ: GLMD) is one of 289 public companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its peers? We will compare Galmed Pharmaceuticals to related companies based on the strength of its institutional ownership, dividends, profitability, risk, earnings, analyst recommendations and valuation.

Volatility and Risk

Galmed Pharmaceuticals has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, Galmed Pharmaceuticals’ peers have a beta of 2.51, indicating that their average share price is 151% more volatile than the S&P 500.

Earnings and Valuation

This table compares Galmed Pharmaceuticals and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Galmed Pharmaceuticals $470,000.00 -$16.95 million -9.43
Galmed Pharmaceuticals Competitors $290.27 million $35.99 million 56.13

Galmed Pharmaceuticals’ peers have higher revenue and earnings than Galmed Pharmaceuticals. Galmed Pharmaceuticals 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 Galmed Pharmaceuticals and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galmed Pharmaceuticals -997.04% -148.52% -95.21%
Galmed Pharmaceuticals Competitors -5,322.24% -84.37% -35.66%

Institutional and Insider Ownership

9.9% of Galmed Pharmaceuticals shares are held by institutional investors. Comparatively, 49.8% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 16.8% of shares of all “Bio Therapeutic Drugs” 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Galmed Pharmaceuticals and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galmed Pharmaceuticals 0 0 4 0 3.00
Galmed Pharmaceuticals Competitors 951 3404 11905 239 2.69

Galmed Pharmaceuticals presently has a consensus target price of $20.75, indicating a potential upside of 80.43%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.60%. Given Galmed Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Galmed Pharmaceuticals is more favorable than its peers.

Summary

Galmed Pharmaceuticals peers beat Galmed Pharmaceuticals on 9 of the 13 factors compared.

Galmed Pharmaceuticals Company Profile

Galmed Pharmaceuticals Ltd. is a clinical-stage biopharmaceutical company. The Company focuses on the development and commercialization of once-daily, oral therapy for the treatment of liver diseases and cholesterol gallstones utilizing its synthetic fatty-acid/bile-acid conjugate (FABAC), called aramchol. Its product candidate, aramchol, is a disease modifying treatment for fatty liver disorders, including Non-Alcoholic Steato-hepatitis (NASH). The Company’s Aramchol is a conjugate of cholic acid and arachidic acid, which is a member of synthetic Fatty-Acid/Bile-Acid Conjugates (FABACs). FABACs are composed of endogenic compounds. Aramchol affects liver fat metabolism and has been shown in a Phase IIa clinical study to reduce liver fat content, as well as improve metabolic parameters associated with Nonalcoholic steatohepatitis (NASH). Aramchol is in Phase IIb clinical trials.

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