Vertex Pharmaceuticals (NASDAQ:VRTX – Get Free Report) is one of 847 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its competitors? We will compare Vertex Pharmaceuticals to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.
Risk & Volatility
Vertex Pharmaceuticals has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals’ competitors have a beta of 0.90, indicating that their average share price is 10% less volatile than the S&P 500.
Earnings & Valuation
This table compares Vertex Pharmaceuticals and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Vertex Pharmaceuticals | $12.59 billion | N/A | 30.33 |
| Vertex Pharmaceuticals Competitors | $105.26 million | -$42.92 million | -9.94 |
Vertex Pharmaceuticals has higher revenue and earnings than its competitors. Vertex Pharmaceuticals 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.
Analyst Recommendations
This is a breakdown of recent ratings for Vertex Pharmaceuticals and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vertex Pharmaceuticals | 0 | 3 | 24 | 1 | 2.93 |
| Vertex Pharmaceuticals Competitors | 9766 | 14997 | 45286 | 1578 | 2.54 |
Vertex Pharmaceuticals presently has a consensus price target of $579.81, indicating a potential upside of 11.28%. As a group, “Biotechnology” companies have a potential upside of 95.25%. Given Vertex Pharmaceuticals’ competitors higher probable upside, analysts plainly believe Vertex Pharmaceuticals has less favorable growth aspects than its competitors.
Insider & Institutional Ownership
91.0% of Vertex Pharmaceuticals shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 0.2% of Vertex Pharmaceuticals shares are held by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by company 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 Vertex Pharmaceuticals and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vertex Pharmaceuticals | N/A | N/A | N/A |
| Vertex Pharmaceuticals Competitors | -14,339.21% | -509.11% | -45.42% |
Summary
Vertex Pharmaceuticals beats its competitors on 9 of the 12 factors compared.
About Vertex Pharmaceuticals
Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF). It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age or older; SYMDEKO/SYMKEVI for people with CF for 6 years of age or older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 year or older who have CF with ivacaftor. The company's pipeline includes VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1 clinical trial; VX-548, a non-opioid medicine for the treatment of acute and neuropathic pain which is in Phase 3 clinical trial; Exa-cel, for the treatment of sickle cell disease and transfusion-dependent beta thalassemia which is in Phase 2/3 clinical trial. In addition, it provides inaxaplin for the treatment of APOL1-mediated focal segmental glomerulosclerosis and co-morbidities, such as hypertension which is in single Phase 2/3; VX- 880 and VX-264, treatment for Type 1 Diabetes which is in Phase 1/2 clinical trial; VX-970, which is in Phase 2 clinical trial for the treatment of cancer; and VX-803 and VX-984 for treatment of cancer in Phase 1 clinical trial. Further, it sells the products to specialty pharmacy and specialty distributors in the United States, as well as retail pharmacies, hospitals, and clinics. Additionally, the company has collaborations with CRISPR Therapeutics AG.; Moderna, Inc.; Entrada Therapeutics, Inc.; Arbor Biotechnologies, Inc.; Mammoth Biosciences, Inc.; and Verve Therapeutics., as well as collaborations with Tevard Biosciences to develop novel tRNA-based therapies for duchenne muscular dystrophy. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.
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