Contrasting Sierra Oncology (NASDAQ:SRRA) and Its Peers

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

Institutional & Insider Ownership

55.6% of Sierra Oncology shares are owned by institutional investors. Comparatively, 49.6% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 5.7% of Sierra Oncology shares are owned by company insiders. Comparatively, 17.4% of shares of all “Bio Therapeutic Drugs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Sierra Oncology N/A -$47.86 million -3.42
Sierra Oncology Competitors $290.27 million $35.99 million 55.49

Sierra Oncology’s competitors have higher revenue and earnings than Sierra Oncology. Sierra Oncology 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 breakdown of current ratings and target prices for Sierra Oncology and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sierra Oncology 0 0 3 0 3.00
Sierra Oncology Competitors 1134 3426 11925 240 2.67

Sierra Oncology currently has a consensus price target of $4.00, indicating a potential upside of 23.08%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 39.67%. Given Sierra Oncology’s competitors higher probable upside, analysts clearly believe Sierra Oncology has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Sierra Oncology N/A -36.93% -34.96%
Sierra Oncology Competitors -5,443.85% -164.39% -36.43%

Volatility and Risk

Sierra Oncology has a beta of 2.77, suggesting that its stock price is 177% more volatile than the S&P 500. Comparatively, Sierra Oncology’s competitors have a beta of 2.37, suggesting that their average stock price is 137% more volatile than the S&P 500.

Summary

Sierra Oncology beats its competitors on 7 of the 13 factors compared.

About Sierra Oncology

Sierra Oncology, Inc., formerly ProNAi Therapeutics, Inc., is a clinical-stage drug development company. The Company’s lead drug candidate, SRA737, is orally bioavailable small molecule inhibitor of Checkpoint kinase 1 (Chk1), a key cell cycle checkpoint and central regulator of the deoxyribonucleic acid (DNA) Damage Response (DDR) network. SRA737 is being investigated in approximately two Phase I clinical trials in patients with advanced cancer. Sierra Oncology is also advancing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase (Cdc7) kinase undergoing preclinical development. Sierra is building a range of pipeline of various oncology assets against targets at the edge of cancer biology. The Company’s SRA737 and SRA141 target the DDR network, a scientifically approach with far-reaching potential across oncology. SRA141 is an orally available small molecule inhibitor of Cdc7.

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