Financial Analysis: InMed Pharmaceuticals (INM) versus Its Peers

InMed Pharmaceuticals (NASDAQ:INM) is one of 897 public companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare InMed Pharmaceuticals to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.

Analyst Ratings

This is a breakdown of recent ratings for InMed Pharmaceuticals and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMed Pharmaceuticals	1	0	0	0	1.00
InMed Pharmaceuticals Competitors	7752	13841	25682	1031	2.41

As a group, “Pharmaceuticals” companies have a potential upside of 23.80%. Given InMed Pharmaceuticals’ peers stronger consensus rating and higher possible upside, analysts clearly believe InMed Pharmaceuticals has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares InMed Pharmaceuticals and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
InMed Pharmaceuticals	$4.94 million	-$12.56 million	-0.97
InMed Pharmaceuticals Competitors	$3.54 billion	$3.18 billion	545.59

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

Insider & Institutional Ownership

20.1% of InMed Pharmaceuticals shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.9% of InMed Pharmaceuticals shares are owned by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InMed Pharmaceuticals	N/A	-156.08%	-123.90%
InMed Pharmaceuticals Competitors	-2,380.63%	-221.06%	-16.01%

Volatility and Risk

InMed Pharmaceuticals has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, InMed Pharmaceuticals’ peers have a beta of -4.34, suggesting that their average stock price is 534% less volatile than the S&P 500.

Summary

InMed Pharmaceuticals peers beat InMed Pharmaceuticals on 10 of the 13 factors compared.

InMed Pharmaceuticals Company Profile

InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry. Its prescription-based products include rare cannabinoids and novel cannabinoid analogs for the treatment of diseases with high unmet medical needs. The company’s lead product is INM-755, a cannabinol topical skin cream, completed Phase 2 clinical trial for the treatment of epidermolysis bullosa. It also develops INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-900 for neurodegenerative diseases. In addition, the company offers IntegraSyn, an integrated biosynthesis-based manufacturing approach, for pharmaceutical-grade cannabinoids; and cannabichromene, cannabicitran, cannabidivarin, and tetrahydrocannabivarin. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.