Financial Analysis: Pharming Group (PHAR) versus Its Rivals

Pharming Group (NASDAQ:PHAR) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its rivals? We will compare Pharming Group to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider and Institutional Ownership

0.0% of Pharming Group shares are held by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are held by institutional investors. 2.1% of Pharming Group shares are held by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Pharming Group and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharming Group	1	1	3	0	2.40
Pharming Group Competitors	9858	15137	45528	1590	2.54

Pharming Group presently has a consensus target price of $39.67, indicating a potential upside of 200.05%. As a group, “Biotechnology” companies have a potential upside of 99.05%. Given Pharming Group’s higher possible upside, equities analysts plainly believe Pharming Group is more favorable than its rivals.

Earnings & Valuation

This table compares Pharming Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pharming Group	$376.13 million	$2.85 million	41.31
Pharming Group Competitors	$714.22 million	$11.22 million	-15.14

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

Profitability

This table compares Pharming Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pharming Group	6.23%	8.70%	4.93%
Pharming Group Competitors	-12,285.98%	-196.04%	-30.61%

Volatility & Risk

Pharming Group has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500. Comparatively, Pharming Group’s rivals have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Summary

Pharming Group rivals beat Pharming Group on 8 of the 13 factors compared.

Pharming Group Company Profile

Pharming Group N.V. is a biotechnology company headquartered in Leiden, the Netherlands, that develops and commercializes medicines for rare and underserved diseases. Founded in 1988, the company has built its business around treatments for disorders involving the immune system. Its marketed products include Ruconest (conestat alfa), a recombinant human C1 esterase inhibitor used to treat acute attacks of hereditary angioedema, and Joenja (leniolisib), an oral treatment for activated phosphoinositide 3-kinase delta syndrome (APDS).