Merrimack Pharmaceuticals (NASDAQ: MACK) is one of 190 public companies in the “Biotechnology & Medical Research” industry, but how does it weigh in compared to its peers? We will compare Merrimack Pharmaceuticals to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Insider & Institutional Ownership

46.5% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 8.5% of Merrimack Pharmaceuticals shares are owned by insiders. Comparatively, 14.7% of shares of all “Biotechnology & Medical Research” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Merrimack Pharmaceuticals has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Merrimack Pharmaceuticals’ peers have a beta of 1.52, suggesting that their average stock price is 52% more volatile than the S&P 500.

Earnings & Valuation

This table compares Merrimack Pharmaceuticals and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Merrimack Pharmaceuticals $144.27 million -$151.74 million 0.35
Merrimack Pharmaceuticals Competitors $213.37 million -$39.02 million -67.35

Merrimack Pharmaceuticals’ peers have higher revenue and earnings than Merrimack Pharmaceuticals. Merrimack Pharmaceuticals is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Merrimack Pharmaceuticals and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merrimack Pharmaceuticals N/A N/A -68.02%
Merrimack Pharmaceuticals Competitors -3,382.72% -99.11% -40.02%

Analyst Ratings

This is a summary of recent recommendations for Merrimack Pharmaceuticals and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merrimack Pharmaceuticals 0 2 0 0 2.00
Merrimack Pharmaceuticals Competitors 508 2395 6583 122 2.66

Merrimack Pharmaceuticals presently has a consensus target price of $15.00, indicating a potential upside of 25.63%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 18.24%. Given Merrimack Pharmaceuticals’ higher possible upside, analysts plainly believe Merrimack Pharmaceuticals is more favorable than its peers.

Summary

Merrimack Pharmaceuticals peers beat Merrimack Pharmaceuticals on 8 of the 12 factors compared.

Merrimack Pharmaceuticals Company Profile

Merrimack Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in discovering, developing and commercializing medicines consisting of therapeutics paired with companion diagnostics for the treatment of cancer. The Company has one marketed therapeutic oncology product and multiple targeted therapeutic oncology candidates in clinical development. Its advanced program is its therapeutic MM-398, which it markets in the United States under the brand name ONIVYDE. Its other clinical stage product candidates include MM-121, MM-141, MM-310, MM-302 and MM-151. The Company is developing in vitro and in vivo diagnostics for use with each of its oncology therapeutic product candidates. Its in vitro diagnostic agents employ biophysical or biochemical markers of cancer, or biomarkers. Its in vivo diagnostics take the form of imaging agents that may help identify patients likely to benefit from its therapeutic products by measuring deposition of its products in the tumor.

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