Critical Analysis: DARA Biosciences (DARA) versus The Competition

DARA Biosciences (NASDAQ: DARA) is one of 19 publicly-traded companies in the “Specialty & Advanced Pharmaceuticals” industry, but how does it weigh in compared to its competitors? We will compare DARA Biosciences to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

65.0% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by institutional investors. 11.5% of shares of all “Specialty & Advanced Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares DARA Biosciences and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DARA Biosciences N/A N/A -1.69
DARA Biosciences Competitors $3.02 billion $642.98 million -31.46

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

Risk and Volatility

DARA Biosciences has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, DARA Biosciences’ competitors have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for DARA Biosciences and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DARA Biosciences 0 0 0 0 N/A
DARA Biosciences Competitors 74 342 1002 29 2.68

As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 22.67%. Given DARA Biosciences’ competitors higher possible upside, analysts clearly believe DARA Biosciences has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
DARA Biosciences -228.42% -145.61% -100.38%
DARA Biosciences Competitors -1,590.82% -52.78% -30.90%

Summary

DARA Biosciences competitors beat DARA Biosciences on 7 of the 8 factors compared.

DARA Biosciences Company Profile

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

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