Analyzing United Therapeutics (UTHR) & The Competition

United Therapeutics (NASDAQ:UTHR) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its competitors? We will compare United Therapeutics to similar businesses based on the strength of its institutional ownership, dividends, analyst recommendations, valuation, risk, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Therapeutics	38.61%	19.18%	17.07%
United Therapeutics Competitors	-12,323.33%	-195.91%	-30.60%

Risk and Volatility

United Therapeutics has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, United Therapeutics’ competitors have a beta of -1.85, suggesting that their average stock price is 285% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
United Therapeutics	$3.18 billion	$1.33 billion	22.34
United Therapeutics Competitors	$702.34 million	$9.48 million	-18.84

United Therapeutics has higher revenue and earnings than its competitors. United Therapeutics is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for United Therapeutics and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Therapeutics	1	3	12	0	2.69
United Therapeutics Competitors	9874	15290	45648	1600	2.54

United Therapeutics presently has a consensus target price of $676.40, suggesting a potential upside of 14.26%. As a group, “Biotechnology” companies have a potential upside of 131.06%. Given United Therapeutics’ competitors higher possible upside, analysts plainly believe United Therapeutics has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

94.1% of United Therapeutics shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 8.6% of United Therapeutics shares are held by insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

United Therapeutics beats its competitors on 10 of the 13 factors compared.

United Therapeutics Company Profile

United Therapeutics is a biotechnology company that develops and commercializes treatments for serious diseases, with a primary focus on pulmonary arterial hypertension (PAH). Its therapies include treprostinil products delivered by injection, inhalation, or oral tablet, marketed under brands including Remodulin, Tyvaso, and Orenitram. The company also markets Unituxin, a treatment for high-risk neuroblastoma. Founded in 1996 by Martine Rothblatt, United Therapeutics is also pursuing technologies intended to address the shortage of transplantable organs.