Critical Review: Beigene (ONC) versus The Competition

Beigene (NASDAQ:ONC) is one of 1,074 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its competitors? We will compare Beigene to related companies based on the strength of its earnings, valuation, analyst recommendations, risk, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Beigene and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beigene	$3.81 billion	-$881.71 million	-37.62
Beigene Competitors	$9.89 billion	$136.37 million	-5.72

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

Analyst Recommendations

This is a breakdown of current recommendations for Beigene and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beigene	0	0	3	0	3.00
Beigene Competitors	8500	22395	50584	1365	2.54

Beigene currently has a consensus target price of $316.67, indicating a potential upside of 37.10%. As a group, “Pharmaceutical preparations” companies have a potential upside of 237.27%. Given Beigene’s competitors higher probable upside, analysts plainly believe Beigene has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

48.5% of Beigene shares are held by institutional investors. Comparatively, 44.0% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 7.4% of Beigene shares are held by insiders. Comparatively, 13.7% of shares of all “Pharmaceutical preparations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Beigene has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Beigene’s competitors have a beta of 3.84, suggesting that their average stock price is 284% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beigene	-25.94%	-25.12%	-14.95%
Beigene Competitors	-3,399.87%	-235.11%	-32.77%

Summary

Beigene competitors beat Beigene on 7 of the 13 factors compared.

About Beigene

BeiGene Ltd. Is a global oncology company, which engages in providing pharmaceutical products. Its medicines include BRUKINSA, TEVIMBRA, and PARTRUVIX. The company was founded by Xiao Dong Wang and John V. Oyler on October 28, 2010 and is headquartered in George Town, KY.