Patheon (NYSE: PTHN) is one of 105 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Patheon to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Volatility and Risk

Patheon has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500. Comparatively, Patheon’s competitors have a beta of 34.15, indicating that their average share price is 3,315% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Patheon $1.87 billion $31.70 million 46.64
Patheon Competitors $8.17 billion $1.09 billion 144.61

Patheon’s competitors have higher revenue and earnings than Patheon. Patheon 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.

Insider & Institutional Ownership

0.7% of Patheon shares are held by institutional investors. Comparatively, 44.8% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.1% of Patheon shares are held by insiders. Comparatively, 11.4% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Patheon 5.63% -35.93% 4.18%
Patheon Competitors -2,402.47% -68.58% -7.25%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Patheon and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patheon 0 6 1 0 2.14
Patheon Competitors 876 3816 6801 181 2.54

Patheon currently has a consensus target price of $33.60, indicating a potential downside of 3.95%. As a group, “Pharmaceuticals” companies have a potential upside of 21.47%. Given Patheon’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Patheon has less favorable growth aspects than its competitors.

Summary

Patheon competitors beat Patheon on 10 of the 13 factors compared.

Patheon Company Profile

Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.

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