Analyzing Cytokinetics (CYTK) & The Competition

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

Risk and Volatility

Cytokinetics has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Cytokinetics’ competitors have a beta of 1.15, indicating that their average share price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

47.9% of shares of all “Biotechnology” companies are held by institutional investors. 2.6% of Cytokinetics 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cytokinetics and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cytokinetics	1	1	19	0	2.86
Cytokinetics Competitors	9789	15070	45344	1572	2.54

Cytokinetics currently has a consensus price target of $105.44, indicating a potential upside of 65.79%. As a group, “Biotechnology” companies have a potential upside of 94.28%. Given Cytokinetics’ competitors higher probable upside, analysts plainly believe Cytokinetics has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cytokinetics	-1,321.12%	N/A	-51.01%
Cytokinetics Competitors	-9,051.23%	-201.20%	-30.64%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Cytokinetics	$88.04 million	-$784.96 million	-8.81
Cytokinetics Competitors	$705.54 million	$10.71 million	-10.13

Cytokinetics’ competitors have higher revenue and earnings than Cytokinetics. Cytokinetics 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.

Summary

Cytokinetics competitors beat Cytokinetics on 8 of the 13 factors compared.

About Cytokinetics

Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.