Critical Comparison: Insmed (INSM) & Its Rivals

Insmed (NASDAQ:INSM) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its competitors? We will compare Insmed to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, valuation, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Insmed	-39.85%	-96.13%	-32.84%
Insmed Competitors	-9,054.31%	-198.21%	-30.53%

Valuation and Earnings

This table compares Insmed and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Insmed	$606.42 million	-$1.28 billion	-39.92
Insmed Competitors	$689.46 million	$10.37 million	-10.05

Insmed’s competitors have higher revenue and earnings than Insmed. Insmed 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.

Volatility & Risk

Insmed has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Insmed’s competitors have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 2.1% of Insmed shares are owned by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are owned 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Insmed and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insmed	1	1	22	1	2.92
Insmed Competitors	9773	15031	45238	1571	2.54

Insmed presently has a consensus target price of $196.70, suggesting a potential upside of 74.72%. As a group, “Biotechnology” companies have a potential upside of 95.63%. Given Insmed’s competitors higher probable upside, analysts clearly believe Insmed has less favorable growth aspects than its competitors.

Summary

Insmed competitors beat Insmed on 8 of the 13 factors compared.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.