Lexicon Pharmaceuticals (NASDAQ: LXRX) is one of 287 public companies in the “Bio Therapeutic Drugs” industry, but how does it contrast to its peers? We will compare Lexicon Pharmaceuticals to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.

Profitability

This table compares Lexicon Pharmaceuticals and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lexicon Pharmaceuticals -165.69% -111.68% -34.02%
Lexicon Pharmaceuticals Competitors -5,441.68% -162.70% -35.92%

Risk & Volatility

Lexicon Pharmaceuticals has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Lexicon Pharmaceuticals’ peers have a beta of 2.40, meaning that their average share price is 140% more volatile than the S&P 500.

Institutional & Insider Ownership

49.7% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 5.8% of Lexicon Pharmaceuticals shares are held by company insiders. Comparatively, 17.5% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Lexicon Pharmaceuticals and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lexicon Pharmaceuticals 0 1 4 0 2.80
Lexicon Pharmaceuticals Competitors 925 3348 11856 237 2.70

Lexicon Pharmaceuticals presently has a consensus target price of $28.50, indicating a potential upside of 178.05%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.68%. Given Lexicon Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Lexicon Pharmaceuticals is more favorable than its peers.

Earnings & Valuation

This table compares Lexicon Pharmaceuticals and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lexicon Pharmaceuticals $83.34 million -$141.42 million -8.07
Lexicon Pharmaceuticals Competitors $290.27 million $35.99 million 57.95

Lexicon Pharmaceuticals’ peers have higher revenue and earnings than Lexicon Pharmaceuticals. Lexicon Pharmaceuticals 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.

Summary

Lexicon Pharmaceuticals peers beat Lexicon Pharmaceuticals on 7 of the 13 factors compared.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of breakthrough treatments for human disease. Its drug programs include XERMELO (telotristat ethyl), sotagliflozin, LX2761 and LX9211. It also has a number of additional compounds into various stages of clinical and preclinical development. XERMELO is an orally-delivered small molecule compound approved by the Food and Drug Administration (FDA) for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy. It is developing sotagliflozin, an orally-delivered small molecule drug candidate, as a treatment for type 1 and type 2 diabetes mellitus. LX2761 is an orally-delivered small molecule compound that it is developing for the treatment of diabetes. LX9211 is an orally-delivered small molecule compound that the Company is developing for the treatment of neuropathic pain.

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