Financial Analysis: Seres Therapeutics (MCRB) versus Its Rivals

Seres Therapeutics (NASDAQ: MCRB) is one of 293 public companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its peers? We will compare Seres Therapeutics to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares Seres Therapeutics and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Seres Therapeutics $21.77 million -$91.57 million -4.46
Seres Therapeutics Competitors $293.65 million $38.24 million 71.02

Seres Therapeutics’ peers have higher revenue and earnings than Seres Therapeutics. Seres Therapeutics 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.

Volatility & Risk

Seres Therapeutics has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Seres Therapeutics’ peers have a beta of 5.67, suggesting that their average share price is 467% more volatile than the S&P 500.

Insider and Institutional Ownership

76.5% of Seres Therapeutics shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 35.7% of Seres Therapeutics shares are owned by company insiders. Comparatively, 16.9% of shares of all “Bio Therapeutic Drugs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Seres Therapeutics and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seres Therapeutics -267.15% -82.11% -36.25%
Seres Therapeutics Competitors -5,370.10% -170.63% -36.61%

Analyst Recommendations

This is a summary of current ratings for Seres Therapeutics and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seres Therapeutics 0 0 9 0 3.00
Seres Therapeutics Competitors 1220 3588 12113 251 2.66

Seres Therapeutics presently has a consensus price target of $18.75, indicating a potential upside of 98.20%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.30%. Given Seres Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Seres Therapeutics is more favorable than its peers.

Summary

Seres Therapeutics beats its peers on 8 of the 13 factors compared.

Seres Therapeutics Company Profile

Seres Therapeutics, Inc. is a microbiome therapeutics platform company. The Company is engaged in developing a class of biological drugs, which is referred as Ecobiotic microbiome therapeutics. The Company’s drugs are designed to restore health by repairing the function of a dysbiotic microbiome. The Company is focused on implementing its microbiome therapeutics platform to develop Ecobiotic microbiome therapeutics that treats dysbiosis in the colonic microbiome. SER-109 is its lead product candidate, which is designed to prevent further recurrences of Clostridium difficile infection (CDI). The Company is developing additional product candidates, including SER-262 to prevent an initial recurrence of primary CDI; SER-287 and SER-301, to treat inflammatory bowel disease (IBD), including ulcerative colitis, and SER-155 to treat enteric bacterial pathogens.

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