Critical Analysis: Peregrine Pharmaceuticals (PPHM) versus The Competition

Peregrine Pharmaceuticals (NASDAQ: PPHM) is one of 45 publicly-traded companies in the “Biopharmaceuticals” industry, but how does it contrast to its rivals? We will compare Peregrine Pharmaceuticals to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Institutional and Insider Ownership

45.3% of shares of all “Biopharmaceuticals” companies are owned by institutional investors. 4.9% of Peregrine Pharmaceuticals shares are owned by insiders. Comparatively, 13.9% of shares of all “Biopharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Peregrine Pharmaceuticals and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peregrine Pharmaceuticals -23.15% -38.19% -16.66%
Peregrine Pharmaceuticals Competitors -13,073.01% 230.26% -22.81%

Analyst Ratings

This is a summary of recent ratings and target prices for Peregrine Pharmaceuticals and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peregrine Pharmaceuticals 0 0 1 0 3.00
Peregrine Pharmaceuticals Competitors 190 910 1681 67 2.57

As a group, “Biopharmaceuticals” companies have a potential upside of 2.36%. Given Peregrine Pharmaceuticals’ rivals higher probable upside, analysts plainly believe Peregrine Pharmaceuticals has less favorable growth aspects than its rivals.

Risk and Volatility

Peregrine Pharmaceuticals has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Peregrine Pharmaceuticals’ rivals have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Peregrine Pharmaceuticals and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Peregrine Pharmaceuticals $79.10 million -$15.94 million -4.92
Peregrine Pharmaceuticals Competitors $578.59 million $241.91 million -6.43

Peregrine Pharmaceuticals’ rivals have higher revenue and earnings than Peregrine Pharmaceuticals. Peregrine Pharmaceuticals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Peregrine Pharmaceuticals rivals beat Peregrine Pharmaceuticals on 7 of the 12 factors compared.

Peregrine Pharmaceuticals Company Profile

Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.

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