Analyzing Salix Pharmaceuticals (SLXP) and Its Peers

Salix Pharmaceuticals (NASDAQ: SLXP) is one of 19 public companies in the “Specialty & Advanced Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Salix Pharmaceuticals to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Volatility and Risk

Salix Pharmaceuticals has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Salix Pharmaceuticals’ competitors have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Salix Pharmaceuticals and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Salix Pharmaceuticals N/A N/A -26.55
Salix Pharmaceuticals Competitors $3.02 billion $642.98 million -30.13

Salix Pharmaceuticals’ competitors have higher revenue and earnings than Salix Pharmaceuticals. Salix Pharmaceuticals 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 Recommendations

This is a breakdown of current ratings and target prices for Salix Pharmaceuticals and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salix Pharmaceuticals 0 0 0 0 N/A
Salix Pharmaceuticals Competitors 69 334 987 29 2.69

As a group, “Specialty & Advanced Pharmaceuticals” companies have a potential upside of 21.10%. Given Salix Pharmaceuticals’ competitors higher probable upside, analysts plainly believe Salix Pharmaceuticals has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

66.1% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by institutional investors. 11.5% of shares of all “Specialty & Advanced Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Salix Pharmaceuticals -2,134.34% -305.24% -25.83%
Salix Pharmaceuticals Competitors -546.55% -38.85% -21.18%

Summary

Salix Pharmaceuticals competitors beat Salix Pharmaceuticals on 8 of the 8 factors compared.

Salix Pharmaceuticals Company Profile

Salix Pharmaceuticals, Ltd. is a specialty pharmaceutical company engaged in acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders. The Company offers over 20 marketed products, such as XIFAXAN550 (rifaximin) tablets, XIFAXAN (rifaximin) tablets, APRISO (mesalamine) extended-release capsules, UCERIS (budesonide MMX) extended release tablets, MOVIPREP, GLUMETZA extended release tablets, RELISTOR subcutaneous injection, UCERIS rectal foam, OSMOPREP tablets, SOLESTA, DEFLUX, FULYZAQ (crofelemer) delayed-release tablets, GIAZO (balsalazide disodium) tablets, CYCLOSET (bromocriptine mesylate) tablets, and FENOGLIDE (fenofibrate) tablets, among others. Its primary product candidates under development include Rifaximin, Methylnaltrexone bromide oral, Ruconest, Rifaximin delayed release or extended intestinal release and Rifaximin soluble solid dispersion (SSD)/next generation.

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