Critical Review: OPKO Health (OPK) and Its Rivals

OPKO Health (NASDAQ:OPK) is one of 233 public companies in the “Healthcare Providers & Services” industry, but how does it weigh in compared to its rivals? We will compare OPKO Health to related businesses based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for OPKO Health and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPKO Health	1	1	4	1	2.71
OPKO Health Competitors	1859	7716	13317	815	2.55

OPKO Health presently has a consensus price target of $3.42, suggesting a potential upside of 91.41%. As a group, “Healthcare Providers & Services” companies have a potential upside of 14.51%. Given OPKO Health’s stronger consensus rating and higher probable upside, equities analysts plainly believe OPKO Health is more favorable than its rivals.

Profitability

This table compares OPKO Health and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OPKO Health	-29.51%	-10.66%	-6.94%
OPKO Health Competitors	-8.01%	-140.31%	-1.38%

Volatility and Risk

OPKO Health has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, OPKO Health’s rivals have a beta of 0.99, meaning that their average share price is 1% less volatile than the S&P 500.

Insider and Institutional Ownership

64.6% of OPKO Health shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 44.7% of OPKO Health shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by 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.

Earnings and Valuation

This table compares OPKO Health and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OPKO Health	$606.90 million	-$225.68 million	-19.83
OPKO Health Competitors	$19.18 billion	$288.54 million	14.36

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

Summary

OPKO Health beats its rivals on 8 of the 13 factors compared.

OPKO Health Company Profile

OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers, and governmental units; and 4Kscore prostate cancer test. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency. This segment also develops multi-specific immune therapies focused on oncology, infectious diseases, vaccines, and immunology; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and related obesity; Somatrogon (hGH-CTP), a once-weekly human growth hormone injection; and Factor VIIa-CTP, a novel long-acting coagulation factor being developed to treat hemophilia. In addition, it develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins; develops and produces specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. The company also operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico. The company was founded in 1991 and is headquartered in Miami, Florida.