Financial Analysis: Cytokinetics (CYTK) and Its Competitors

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

Earnings and Valuation

This table compares Cytokinetics and its rivals gross revenue, earnings per share (EPS) and valuation.

Cytokinetics’ rivals have higher revenue and earnings than Cytokinetics. Cytokinetics 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 Cytokinetics and its rivals’ net margins, return on equity and return on assets.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cytokinetics and its rivals, as provided by MarketBeat.

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

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, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Cytokinetics

(Get Free Report)

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.