Insmed (INSM) and The Competition Critical Survey
by Amy Steele · The Cerbat GemInsmed (NASDAQ:INSM – Get Free Report) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its peers? We will compare Insmed to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, analyst recommendations, profitability and risk.
Institutional and Insider Ownership
47.9% of shares of all “Biotechnology” companies are held by institutional investors. 2.1% of Insmed 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Insmed and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Insmed | 1 | 1 | 23 | 1 | 2.92 |
| Insmed Competitors | 9838 | 15122 | 45436 | 1587 | 2.54 |
Insmed currently has a consensus target price of $196.52, indicating a potential upside of 71.78%. As a group, “Biotechnology” companies have a potential upside of 102.86%. Given Insmed’s peers higher possible upside, analysts clearly believe Insmed has less favorable growth aspects than its peers.
Risk and Volatility
Insmed has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Insmed’s peers have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.
Earnings & Valuation
This table compares Insmed and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Insmed | $606.42 million | -$1.28 billion | -40.57 |
| Insmed Competitors | $728.25 million | $12.25 million | -15.19 |
Insmed’s peers have higher revenue and earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Insmed and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Insmed | -39.85% | -96.38% | -32.55% |
| Insmed Competitors | -12,357.18% | -197.96% | -30.56% |
Summary
Insmed peers beat Insmed on 8 of the 13 factors compared.
About Insmed
Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.