Critical Review: Journey Medical (DERM) & The Competition

Journey Medical (NASDAQ:DERM) is one of 996 public companies in the “Pharmaceutical preparations” industry, but how does it contrast to its peers? We will compare Journey Medical to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Institutional and Insider Ownership

7.3% of Journey Medical shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 19.4% of Journey Medical shares are owned by company insiders. Comparatively, 14.4% of shares of all “Pharmaceutical preparations” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Journey Medical and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	0	0	1	0	3.00
Journey Medical Competitors	6172	18319	44043	909	2.57

Journey Medical currently has a consensus price target of $8.50, indicating a potential upside of 130.98%. As a group, “Pharmaceutical preparations” companies have a potential upside of 68.84%. Given Journey Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Journey Medical is more favorable than its peers.

Risk and Volatility

Journey Medical has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Journey Medical’s peers have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Journey Medical and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Journey Medical	$79.18 million	-$3.85 million	-10.51
Journey Medical Competitors	$2.14 billion	$149.57 million	-4.89

Journey Medical’s peers have higher revenue and earnings than Journey Medical. Journey Medical 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.

Profitability

This table compares Journey Medical and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-4.87%	-46.48%	-4.99%
Journey Medical Competitors	-2,554.11%	-203.85%	-29.63%

Summary

Journey Medical beats its peers on 7 of the 12 factors compared.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Zilxi, a topical minocycline treatment for inflammatory lesions; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use. It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.