Lipella Pharmaceuticals (LIPO) and Its Peers Critical Contrast

Lipella Pharmaceuticals (NASDAQ:LIPO) is one of 1,049 public companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its competitors? We will compare Lipella Pharmaceuticals to related companies based on the strength of its valuation, institutional ownership, earnings, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings for Lipella Pharmaceuticals and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lipella Pharmaceuticals	0	0	1	0	3.00
Lipella Pharmaceuticals Competitors	7610	20893	48544	1193	2.55

Lipella Pharmaceuticals presently has a consensus target price of $16.00, suggesting a potential upside of 444.22%. As a group, “Pharmaceutical preparations” companies have a potential upside of 71.25%. Given Lipella Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lipella Pharmaceuticals is more favorable than its competitors.

Risk & Volatility

Lipella Pharmaceuticals has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Lipella Pharmaceuticals’ competitors have a beta of 1.00, indicating that their average stock price is 0% more 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	-3,610.16%	-274.38%	-39.07%

Insider and Institutional Ownership

74.3% of Lipella Pharmaceuticals shares are owned by institutional investors. Comparatively, 44.3% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 32.1% of Lipella Pharmaceuticals shares are owned by insiders. Comparatively, 13.8% of shares of all “Pharmaceutical preparations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Lipella Pharmaceuticals and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lipella Pharmaceuticals	$483,533.00	-$4.62 million	-0.69
Lipella Pharmaceuticals Competitors	$1.70 billion	$154.84 million	-5.62

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.

Summary

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

About Lipella Pharmaceuticals

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.