Reviewing Verastem (NASDAQ:VSTM) & Its Rivals

Verastem (NASDAQ: VSTM) is one of 290 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its rivals? We will compare Verastem to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Verastem N/A -$36.44 million -1.84
Verastem Competitors $290.27 million $35.99 million 63.82

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

Risk & Volatility

Verastem has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500. Comparatively, Verastem’s rivals have a beta of 6.67, meaning that their average stock price is 567% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Verastem and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verastem 0 1 7 0 2.88
Verastem Competitors 1145 3453 11964 242 2.67

Verastem currently has a consensus target price of $10.64, suggesting a potential upside of 253.58%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.20%. Given Verastem’s stronger consensus rating and higher possible upside, analysts clearly believe Verastem is more favorable than its rivals.

Institutional & Insider Ownership

28.7% of Verastem shares are owned by institutional investors. Comparatively, 49.4% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 6.5% of Verastem shares are owned by insiders. Comparatively, 17.5% of shares of all “Bio Therapeutic Drugs” companies are owned by 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Verastem N/A -110.32% -85.98%
Verastem Competitors -5,400.85% -161.62% -35.75%

Summary

Verastem rivals beat Verastem on 8 of the 13 factors compared.

Verastem Company Profile

Verastem, Inc. is a biopharmaceutical company. The Company is focused on discovering and developing drugs to improve outcomes for patients with cancer. The Company operates in the segment of developing drugs for the treatment of cancer. The Company’s advanced product candidates are VS 6063, VS 4718 and VS 5584. The Company’s programs target the Focal Adhesion Kinase (FAK) and the PI3K/mTOR signaling pathways. FAK is a non-receptor tyrosine kinase encoded by the PTK-2 gene that is involved in cellular adhesion and, in cancer, metastatic capability. The Company’s VS-6063 (defactinib) and VS 4718 are orally available small molecule compounds designed to inhibit FAK signaling. The Company’s VS-5584 is an orally available small molecule that inhibits both mTORC1/2 and PI3K signaling. The Company is engaged in running clinical trials in cancers where there are limited treatment options, including lung, ovarian, lymphoma, pancreatic and other advanced cancers.

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