Cambrex (NYSE:CBM) and Its Rivals Critical Review

Cambrex (NYSE: CBM) is one of 103 public companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its competitors? We will compare Cambrex to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Risk and Volatility

Cambrex has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500. Comparatively, Cambrex’s competitors have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cambrex and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cambrex $490.64 million $81.67 million 16.93
Cambrex Competitors $8.31 billion $1.11 billion 152.19

Cambrex’s competitors have higher revenue and earnings than Cambrex. Cambrex is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Cambrex and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex 0 0 3 0 3.00
Cambrex Competitors 959 3858 6884 183 2.53

Cambrex presently has a consensus target price of $62.33, indicating a potential upside of 20.68%. As a group, “Pharmaceuticals” companies have a potential upside of 18.89%. Given Cambrex’s stronger consensus rating and higher probable upside, research analysts clearly believe Cambrex is more favorable than its competitors.

Profitability

This table compares Cambrex and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambrex 18.79% 23.42% 16.19%
Cambrex Competitors -2,466.98% -68.60% -7.96%

Institutional & Insider Ownership

43.9% of shares of all “Pharmaceuticals” companies are held by institutional investors. 2.5% of Cambrex shares are held by company insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Cambrex beats its competitors on 7 of the 13 factors compared.

About Cambrex

Cambrex Corporation (Cambrex) is a life sciences company. It provides products and services for the development and commercialization of generic therapeutics. It operates through four segments, which are manufacturing facilities that have been aggregated as a single segment. Its manufacturing facilities are owned by the subsidiaries, including Cambrex Charles City, Inc., Cambrex Karlskoga AB and Cambrex Profarmaco Milano S.r.l. Its products consist of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. It delivers services, such as custom organic synthesis and process development; current good manufacturing practices (cGMP) manufacturing of API and intermediates from grams to hundreds of kilograms; cGMP analytical services; controlled substance research and development (R&D) and manufacture, Schedule II-V, and contract research. It has API R&D and cGMP facilities in the United States and Europe. It supplies over 90 generic APIs.

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