Critical Contrast: Loxo Oncology (LOXO) vs. Its Competitors
Loxo Oncology (NASDAQ: LOXO) is one of 295 public companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its peers? We will compare Loxo Oncology to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.
Risk and Volatility
Loxo Oncology has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500. Comparatively, Loxo Oncology’s peers have a beta of 6.66, suggesting that their average share price is 566% more volatile than the S&P 500.
Insider and Institutional Ownership
50.2% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 44.4% of Loxo Oncology shares are owned by insiders. Comparatively, 17.0% 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 is poised for long-term growth.
This table compares Loxo Oncology and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Loxo Oncology Competitors||-5,509.84%||-450.88%||-42.12%|
This is a summary of current ratings for Loxo Oncology and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Loxo Oncology Competitors||765||3039||11206||227||2.72|
Loxo Oncology presently has a consensus target price of $79.69, indicating a potential downside of 7.87%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 37.43%. Given Loxo Oncology’s peers higher possible upside, analysts plainly believe Loxo Oncology has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Loxo Oncology and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Loxo Oncology||N/A||-$101.07 million||-20.60|
|Loxo Oncology Competitors||$260.16 million||$66.28 million||-6.28|
Loxo Oncology’s peers have higher revenue and earnings than Loxo Oncology. Loxo Oncology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
About Loxo Oncology
Loxo Oncology, Inc. is a biopharmaceutical company. The Company is focused on development of medicines for patients with genetically defined cancers. The Company’s pipeline focuses on cancers that are dependent on single gene abnormalities, such that a single drug has the potential to treat the cancer with dramatic effect. Larotrectinib, formerly referred to as LOXO-101, is an oral, selective inhibitor of the tropomyosin receptor kinase (TRK) family in development for the treatment of tumors with TRK fusions. TRK fusions have been implicated in various tumor types, such as lung cancer, head and neck cancer, melanoma, colorectal cancer, sarcoma, and breast cancer. LOXO-195 is a drug candidate in preclinical development. It was designed as a second-generation TRK inhibitor intended to address predicted acquired resistance mechanisms resulting from therapy with a first-generation TRK inhibitor, such as larotrectinib, or multikinase inhibitors with anti-TRK activity.
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