Head-To-Head Analysis: Foundation Medicine (FMI) and Its Peers
Foundation Medicine (NASDAQ: FMI) is one of 198 publicly-traded companies in the “Biotechnology & Medical Research” industry, but how does it weigh in compared to its competitors? We will compare Foundation Medicine to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.
Institutional & Insider Ownership
31.9% of Foundation Medicine shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 2.7% of Foundation Medicine shares are owned by company insiders. Comparatively, 14.0% of shares of all “Biotechnology & Medical Research” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Foundation Medicine has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, Foundation Medicine’s competitors have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Foundation Medicine and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Foundation Medicine Competitors||482||2277||6219||120||2.66|
Foundation Medicine presently has a consensus target price of $35.00, suggesting a potential downside of 18.89%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 12.72%. Given Foundation Medicine’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Foundation Medicine has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares Foundation Medicine and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Foundation Medicine||$119.58 million||-$140.79 million||-9.65|
|Foundation Medicine Competitors||$206.23 million||-$2.30 million||2.12|
Foundation Medicine’s competitors have higher revenue and earnings than Foundation Medicine. Foundation Medicine 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.
This table compares Foundation Medicine and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Foundation Medicine Competitors||-3,960.95%||-117.55%||-43.31%|
Foundation Medicine competitors beat Foundation Medicine on 10 of the 12 factors compared.
About Foundation Medicine
Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).
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