Head to Head Survey: Allergan (AGN) and Its Competitors

Allergan (NYSE: AGN) is one of 491 public companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its competitors? We will compare Allergan to similar companies based on the strength of its dividends, profitability, institutional ownership, analyst recommendations, risk, earnings and valuation.

Dividends

Allergan pays an annual dividend of $2.88 per share and has a dividend yield of 1.9%. Allergan pays out 17.6% of its earnings in the form of a dividend. As a group, “Pharmaceutical preparations” companies pay a dividend yield of 2.2% and pay out 32.3% of their earnings in the form of a dividend.

Insider & Institutional Ownership

79.6% of Allergan shares are held by institutional investors. Comparatively, 47.5% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 0.4% of Allergan shares are held by insiders. Comparatively, 15.8% of shares of all “Pharmaceutical preparations” companies are held 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.

Risk & Volatility

Allergan has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Allergan’s competitors have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Allergan -11.94% 8.53% 5.00%
Allergan Competitors -2,958.10% -158.97% -30.57%

Valuation & Earnings

This table compares Allergan and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Allergan $15.94 billion -$4.13 billion 9.49
Allergan Competitors $2.01 billion $135.87 million -3.40

Allergan has higher revenue, but lower earnings than its competitors. Allergan is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Allergan and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allergan 0 6 15 0 2.71
Allergan Competitors 3000 9076 22019 625 2.58

Allergan currently has a consensus price target of $214.16, suggesting a potential upside of 38.03%. As a group, “Pharmaceutical preparations” companies have a potential upside of 41.26%. Given Allergan’s competitors higher probable upside, analysts plainly believe Allergan has less favorable growth aspects than its competitors.

Summary

Allergan beats its competitors on 10 of the 15 factors compared.

Allergan Company Profile

Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Specialized Therapeutics, US General Medicine, and International segments. The company offers a portfolio of products that provide treatment for the central nervous system, gastroenterology, women's health and urology, ophthalmology, neurosciences, medical aesthetics, dermatology, plastic surgery, liver disease, inflammation, metabolic syndromes, and fibrosis, as well as Alzheimer's disease. It is also involved in developing ocular implants that reduce intraocular pressure associated with glaucoma; medical devices for the correction of prominent ears; and intranasal neurostimulation devices, as well as other dry eye products. In addition, the company distributes generic and branded pharmaceutical products primarily to independent and chain pharmacies, nursing homes, mail order pharmacies, hospitals, clinics, and physician offices. Further, it develops a portfolio of breast implants and tissue expanders; and RM-131 (relamorelin), a peptide ghrelin agonist for the treatment of diabetic gastroparesis. The company has licensing agreement with Assembly Biosciences, Inc.; Mimetogen Pharmaceuticals, Inc.; Almirall, S.A; Naurex, Inc.; and Merck & Co. The company was formerly known as Actavis plc and changed its name to Allergan plc in June 2015. Allergan plc was founded in 1983 and is headquartered in Dublin, Ireland.

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