Financial Contrast: Sagimet Biosciences (SGMT) versus Its Peers

Sagimet Biosciences (NASDAQ:SGMT) is one of 1,075 public companies in the “Pharmaceutical preparations” industry, but how does it compare to its competitors? We will compare Sagimet Biosciences to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Sagimet Biosciences has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, Sagimet Biosciences’ competitors have a beta of 3.80, indicating that their average stock price is 280% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sagimet Biosciences and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sagimet Biosciences	0	1	4	0	2.80
Sagimet Biosciences Competitors	8639	22634	50938	1396	2.54

Sagimet Biosciences currently has a consensus target price of $22.40, indicating a potential upside of 576.74%. As a group, “Pharmaceutical preparations” companies have a potential upside of 221.47%. Given Sagimet Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Sagimet Biosciences is more favorable than its competitors.

Earnings and Valuation

This table compares Sagimet Biosciences and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sagimet Biosciences	$2.00 million	-$27.88 million	-2.31
Sagimet Biosciences Competitors	$9.91 billion	$136.15 million	-4.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sagimet Biosciences	N/A	-23.63%	-22.91%
Sagimet Biosciences Competitors	-3,399.87%	-235.11%	-32.77%

Institutional & Insider Ownership

87.9% of Sagimet Biosciences shares are held by institutional investors. Comparatively, 44.0% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 17.6% of Sagimet Biosciences shares are held by company insiders. Comparatively, 13.6% of shares of all “Pharmaceutical preparations” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Sagimet Biosciences beats its competitors on 9 of the 13 factors compared.

Sagimet Biosciences Company Profile

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional metabolic pathways in the United States. The company’s lead drug candidate is Denifanstat, a once-daily pill and selective FASN inhibitor for the treatment of metabolic dysfunction associated steatohepatitis. It also develops TVB-3567, a FASN inhibitor for the treatment of acne; and other oncology programs. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.