Analyzing Phathom Pharmaceuticals (PHAT) and Its Peers

Phathom Pharmaceuticals (NASDAQ:PHAT) is one of 896 public companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Phathom Pharmaceuticals to similar companies based on the strength of its earnings, institutional ownership, valuation, dividends, risk, analyst recommendations and profitability.

Analyst Ratings

This is a summary of current recommendations and price targets for Phathom Pharmaceuticals and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	1	1	8	1	2.82
Phathom Pharmaceuticals Competitors	7769	13856	25728	1032	2.41

Phathom Pharmaceuticals currently has a consensus target price of $20.11, suggesting a potential upside of 250.37%. As a group, “Pharmaceuticals” companies have a potential upside of 24.24%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Phathom Pharmaceuticals is more favorable than its peers.

Profitability

This table compares Phathom Pharmaceuticals and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-30.19%	N/A	-13.38%
Phathom Pharmaceuticals Competitors	-2,372.59%	-220.83%	-15.99%

Institutional & Insider Ownership

99.0% of Phathom Pharmaceuticals shares are held by institutional investors. Comparatively, 32.6% of shares of all “Pharmaceuticals” companies are held by institutional investors. 9.3% of Phathom 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Phathom Pharmaceuticals has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals’ peers have a beta of -3.79, meaning that their average share price is 479% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Phathom Pharmaceuticals	$175.11 million	-$221.25 million	-5.57
Phathom Pharmaceuticals Competitors	$3.55 billion	$3.17 billion	547.96

Phathom Pharmaceuticals’ peers have higher revenue and earnings than Phathom Pharmaceuticals. Phathom Pharmaceuticals 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.

Summary

Phathom Pharmaceuticals beats its peers on 9 of the 13 factors compared.

Phathom Pharmaceuticals Company Profile

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.