Analyzing Lipella Pharmaceuticals (LIPO) and Its Rivals

Lipella Pharmaceuticals (NASDAQ:LIPO) is one of 1,048 public companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its competitors? We will compare Lipella Pharmaceuticals to similar businesses based on the strength of its earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lipella Pharmaceuticals and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lipella Pharmaceuticals	0	0	1	0	3.00
Lipella Pharmaceuticals Competitors	7607	20882	48486	1193	2.55

Lipella Pharmaceuticals currently has a consensus target price of $16.00, indicating a potential upside of 508.37%. As a group, “Pharmaceutical preparations” companies have a potential upside of 72.50%. Given Lipella Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lipella Pharmaceuticals is more favorable than its competitors.

Institutional & Insider Ownership

74.3% of Lipella Pharmaceuticals shares are held by institutional investors. Comparatively, 44.2% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 32.1% of Lipella Pharmaceuticals shares are held by company insiders. Comparatively, 13.8% of shares of all “Pharmaceutical preparations” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lipella Pharmaceuticals and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lipella Pharmaceuticals	$450,000.00	-$4.62 million	-0.62
Lipella Pharmaceuticals Competitors	$2.54 billion	$150.53 million	-5.14

Lipella Pharmaceuticals’ competitors have higher revenue and earnings than Lipella Pharmaceuticals. Lipella Pharmaceuticals 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.

Risk and Volatility

Lipella Pharmaceuticals has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Lipella Pharmaceuticals’ competitors have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lipella Pharmaceuticals	-882.82%	-192.33%	-154.24%
Lipella Pharmaceuticals Competitors	-3,620.37%	-274.65%	-33.65%

Summary

Lipella Pharmaceuticals beats its competitors on 8 of the 13 factors compared.

Lipella Pharmaceuticals Company Profile

Lipella Pharmaceuticals Inc., a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD). Lipella Pharmaceuticals Inc. was incorporated in 2005 and is headquartered in Pittsburgh, Pennsylvania.