Reviewing Patheon (NYSE:PTHN) & The Competition

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

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Patheon $1.87 billion $31.70 million 46.03
Patheon Competitors $8.31 billion $1.11 billion 159.04

Patheon’s rivals have higher revenue and earnings than Patheon. Patheon 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

0.6% of Patheon shares are owned by institutional investors. Comparatively, 44.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.1% of Patheon shares are owned by insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Patheon and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patheon 0 6 1 0 2.14
Patheon Competitors 904 3898 6888 183 2.53

Patheon currently has a consensus price target of $33.60, suggesting a potential downside of 3.95%. As a group, “Pharmaceuticals” companies have a potential upside of 19.34%. Given Patheon’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Patheon has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Patheon 5.63% -35.93% 4.18%
Patheon Competitors -2,433.13% -68.53% -8.70%

Summary

Patheon rivals beat Patheon on 9 of the 12 factors compared.

About Patheon

Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.

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