Critical Contrast: Ariad Pharmaceuticals (ARIA) vs. Its Competitors

Ariad Pharmaceuticals (NASDAQ: ARIA) is one of 289 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its rivals? We will compare Ariad Pharmaceuticals to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ariad Pharmaceuticals and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ariad Pharmaceuticals 0 1 0 0 2.00
Ariad Pharmaceuticals Competitors 954 3404 11910 239 2.69

Ariad Pharmaceuticals currently has a consensus target price of $24.00, suggesting a potential upside of 0.04%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.82%. Given Ariad Pharmaceuticals’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Ariad Pharmaceuticals has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

87.0% of Ariad Pharmaceuticals shares are held by institutional investors. Comparatively, 49.8% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 8.2% of Ariad Pharmaceuticals shares are held by company insiders. Comparatively, 16.8% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Ariad Pharmaceuticals N/A N/A -133.28
Ariad Pharmaceuticals Competitors $290.27 million $35.99 million 56.11

Ariad Pharmaceuticals’ rivals have higher revenue and earnings than Ariad Pharmaceuticals. Ariad Pharmaceuticals 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Ariad Pharmaceuticals -60.47% N/A -17.16%
Ariad Pharmaceuticals Competitors -5,322.24% -84.37% -35.66%

Summary

Ariad Pharmaceuticals rivals beat Ariad Pharmaceuticals on 7 of the 11 factors compared.

Ariad Pharmaceuticals Company Profile

ARIAD Pharmaceuticals, Inc. (ARIAD) is an oncology company. The Company is focused on transforming the lives of cancer patients with medicines. The Company’s product pipeline includes Iclusig (ponatinib), brigatinib, AP32788 and ridaforolimus. The Company’s Iclusig is a tyrosine kinase inhibitor (TKI) that is approved in the United States, the European Union, Australia, Switzerland, Israel and Canada for the treatment of adult patients with chronic myeloid leukemia (CML), and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL). Its Brigatinib is an investigational inhibitor of anaplastic lymphoma kinase (ALK). Its AP32788 is a TKI, which is designed as a targeted therapy for patients with non-small cell lung cancer (NSCLC) with specific mutations in two kinases, epidermal growth factor receptor (EGFR), or human epidermal growth factor receptor 2 (HER2). Its Ridaforolimus is an investigational inhibitor of the mammalian target of rapamycin (mTOR).

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