AstraZeneca (AZN) & The Competition Critical Review

AstraZeneca (NYSE: AZN) is one of 103 publicly-traded companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its rivals? We will compare AstraZeneca to similar businesses based on the strength of its risk, profitability, earnings, dividends, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for AstraZeneca and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AstraZeneca 1 7 11 0 2.53
AstraZeneca Competitors 873 3797 6772 181 2.54

AstraZeneca currently has a consensus target price of $36.60, indicating a potential upside of 13.59%. As a group, “Pharmaceuticals” companies have a potential upside of 35.56%. Given AstraZeneca’s rivals stronger consensus rating and higher possible upside, analysts clearly believe AstraZeneca has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
AstraZeneca 15.90% 34.02% 8.37%
AstraZeneca Competitors -2,436.30% -70.63% -7.85%

Dividends

AstraZeneca pays an annual dividend of $1.37 per share and has a dividend yield of 4.3%. AstraZeneca pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 67.5% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares AstraZeneca and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AstraZeneca $23.00 billion $3.50 billion 23.01
AstraZeneca Competitors $8.17 billion $1.09 billion 118.14

AstraZeneca has higher revenue and earnings than its rivals. AstraZeneca 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.

Volatility and Risk

AstraZeneca has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, AstraZeneca’s rivals have a beta of 34.13, meaning that their average share price is 3,313% more volatile than the S&P 500.

Insider and Institutional Ownership

14.8% of AstraZeneca shares are held by institutional investors. Comparatively, 44.1% of shares of all “Pharmaceuticals” companies are held by institutional investors. 11.3% of shares of all “Pharmaceuticals” 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.

Summary

AstraZeneca rivals beat AstraZeneca on 9 of the 15 factors compared.

About AstraZeneca

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.

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