Critical Survey: Achaogen (NASDAQ:AKAO) versus Its Rivals

Achaogen (NASDAQ: AKAO) is one of 293 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its peers? We will compare Achaogen to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Achaogen -281.88% -86.24% -51.32%
Achaogen Competitors -5,527.51% -454.38% -42.49%

Analyst Ratings

This is a summary of current recommendations for Achaogen and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Achaogen 0 1 8 0 2.89
Achaogen Competitors 758 3015 11129 227 2.72

Achaogen presently has a consensus price target of $28.13, indicating a potential upside of 102.63%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 33.66%. Given Achaogen’s stronger consensus rating and higher possible upside, equities analysts plainly believe Achaogen is more favorable than its peers.

Volatility and Risk

Achaogen has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Achaogen’s peers have a beta of 6.66, indicating that their average stock price is 566% more volatile than the S&P 500.

Insider & Institutional Ownership

84.1% of Achaogen shares are held by institutional investors. Comparatively, 51.0% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 8.4% of Achaogen shares are held by company insiders. Comparatively, 16.9% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Achaogen $35.51 million -$68.05 million -4.39
Achaogen Competitors $260.16 million $66.28 million -6.83

Achaogen’s peers have higher revenue and earnings than Achaogen. Achaogen is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

About Achaogen

Achaogen, Inc. is a late-stage biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections. The Company is involved in researching and developing plazomicin, its lead product candidate, for the treatment of serious bacterial infections, including complicated urinary tract infection (cUTI), blood stream infections and other infections due to MDR Enterobacteriaceae, including carbapenem-resistant Enterobacteriaceae (CRE). Plazomicin is an intravenous aminoglycoside antibiotic. The Company has developed plazomicin by chemically modifying sisomicin, a naturally occurring aminoglycoside, in order to overcome common aminoglycoside resistance mechanisms. The Company has a portfolio of small molecule and antibody programs. The Company’s Early Development programs include C-Scape and LpxC.

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