Financial Contrast: Cumberland Pharmaceuticals (CPIX) and Its Peers

Cumberland Pharmaceuticals (NASDAQ:CPIX) is one of 896 public companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its competitors? We will compare Cumberland Pharmaceuticals to related companies based on the strength of its profitability, valuation, analyst recommendations, risk, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 42.1% of Cumberland Pharmaceuticals shares are held by company insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by company 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.

Volatility & Risk

Cumberland Pharmaceuticals has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals’ competitors have a beta of -4.10, meaning that their average stock price is 510% less volatile than the S&P 500.

Profitability

This table compares Cumberland Pharmaceuticals and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-34.40%	-28.81%	-9.25%
Cumberland Pharmaceuticals Competitors	-2,381.29%	-218.58%	-15.77%

Valuation & Earnings

This table compares Cumberland Pharmaceuticals and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cumberland Pharmaceuticals	$44.30 million	-$2.84 million	-7.01
Cumberland Pharmaceuticals Competitors	$5.42 billion	$3.22 billion	549.55

Cumberland Pharmaceuticals’ competitors have higher revenue and earnings than Cumberland Pharmaceuticals. Cumberland Pharmaceuticals 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cumberland Pharmaceuticals and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
Cumberland Pharmaceuticals Competitors	7782	13874	25762	1035	2.41

As a group, “Pharmaceuticals” companies have a potential upside of 28.29%. Given Cumberland Pharmaceuticals’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Cumberland Pharmaceuticals has less favorable growth aspects than its competitors.

Summary

Cumberland Pharmaceuticals competitors beat Cumberland Pharmaceuticals on 8 of the 13 factors compared.

Cumberland Pharmaceuticals Company Profile

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.