Critical Contrast: Karuna Therapeutics (KRTX) & Its Peers

Karuna Therapeutics (NASDAQ: KRTX) is one of 618 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its competitors? We will compare Karuna Therapeutics to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Earnings and Valuation

This table compares Karuna Therapeutics and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Karuna Therapeutics N/A -$43.96 million -29.45
Karuna Therapeutics Competitors $2.12 billion $260.75 million 0.59

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

Institutional & Insider Ownership

63.9% of Karuna Therapeutics shares are owned by institutional investors. Comparatively, 45.7% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 18.1% of Karuna Therapeutics shares are owned by company insiders. Comparatively, 15.5% of shares of all “Pharmaceutical preparations” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Karuna Therapeutics and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Karuna Therapeutics N/A -18.24% -15.83%
Karuna Therapeutics Competitors -3,409.24% -244.96% -33.16%

Analyst Recommendations

This is a summary of current ratings and target prices for Karuna Therapeutics and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Karuna Therapeutics 0 0 11 0 3.00
Karuna Therapeutics Competitors 6716 18624 35987 1437 2.51

Karuna Therapeutics currently has a consensus target price of $117.73, indicating a potential upside of 8.61%. As a group, “Pharmaceutical preparations” companies have a potential upside of 37.80%. Given Karuna Therapeutics’ competitors higher possible upside, analysts plainly believe Karuna Therapeutics has less favorable growth aspects than its competitors.

Summary

Karuna Therapeutics beats its competitors on 7 of the 12 factors compared.

Karuna Therapeutics Company Profile

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs. The company's lead product candidate is KarXT, an oral modulator that is in Phase II clinical trial for the treatment of acute psychosis in patients with schizophrenia, as well as in Phase Ib clinical trial for the treatment of central nervous system disorders, such as cognitive and negative symptoms, Alzheimer's, and pain. It also focuses on developing other muscarinic-targeted drug candidates. Karuna Pharmaceuticals, Inc. has a license agreement with Eli Lilly and Company; and patent license agreement with PureTech Health LLC. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was founded in 2009 and is headquartered in Boston, Massachusetts. Karuna Therapeutics, Inc. operates as a subsidiary of PureTech Health plc.

Receive News & Ratings for Karuna Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Karuna Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.