Flex Pharma (NASDAQ: FLKS) is one of 285 public companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its rivals? We will compare Flex Pharma to related companies based on the strength of its profitability, risk, dividends, earnings, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Flex Pharma has a beta of 3.54, suggesting that its stock price is 254% more volatile than the S&P 500. Comparatively, Flex Pharma’s rivals have a beta of 6.16, suggesting that their average stock price is 516% more volatile than the S&P 500.

Earnings & Valuation

This table compares Flex Pharma and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Flex Pharma $1.01 million -$39.49 million -1.84
Flex Pharma Competitors $284.28 million $34.29 million 81.47

Flex Pharma’s rivals have higher revenue and earnings than Flex Pharma. Flex Pharma is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Flex Pharma and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flex Pharma 0 1 3 0 2.75
Flex Pharma Competitors 857 3201 11603 231 2.71

Flex Pharma currently has a consensus target price of $11.00, indicating a potential upside of 195.70%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 44.11%. Given Flex Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe Flex Pharma is more favorable than its rivals.

Profitability

This table compares Flex Pharma and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flex Pharma -2,655.19% -71.39% -65.49%
Flex Pharma Competitors -5,314.35% -220.60% -40.77%

Institutional and Insider Ownership

27.3% of Flex Pharma shares are held by institutional investors. Comparatively, 50.2% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 45.4% of Flex Pharma shares are held by insiders. Comparatively, 17.1% of shares of all “Bio Therapeutic Drugs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

About Flex Pharma

Flex Pharma, Inc. is a biotechnology company. The Company develops treatments for nocturnal leg cramps, muscle cramps and spasms associated with severe neuromuscular conditions, and exercise associated muscle cramps (EAMCs). The Company’s product candidates activate certain receptors in primary sensory neurons, which then act through neuronal circuits to reduce the repetitive firing, or hyperexcitability, of alpha-motor neurons in the spinal cord, thereby preventing or reducing the frequency and intensity of muscle cramps and spasms. The Company operates through developing and commercializing products for nocturnal leg cramps, muscle cramps, spasms and spasticity associated with severe neuromuscular conditions, and exercise-associated muscle cramps segment. The Company’s lead drug product candidate is FLX-787, which is in the Phase II clinical trial stage. It is developing a consumer brand and products specifically formulated to treat athletes suffering from EAMCs.

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