Reviewing Sanofi (SNY) and The Competition

Sanofi (NYSE: SNY) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Sanofi to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

9.3% of Sanofi shares are held by institutional investors. Comparatively, 43.6% of shares of all “Pharmaceuticals” companies are held by institutional investors. 1.0% of Sanofi shares are held by company insiders. Comparatively, 11.8% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Sanofi and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanofi 1 6 4 0 2.27
Sanofi Competitors 823 3697 6733 182 2.55

Sanofi presently has a consensus target price of $53.50, indicating a potential upside of 6.96%. As a group, “Pharmaceuticals” companies have a potential upside of 22.40%. Given Sanofi’s peers stronger consensus rating and higher probable upside, analysts clearly believe Sanofi has less favorable growth aspects than its peers.

Profitability

This table compares Sanofi and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanofi 25.89% 25.34% 14.17%
Sanofi Competitors -2,882.27% -68.05% -8.96%

Dividends

Sanofi pays an annual dividend of $1.10 per share and has a dividend yield of 2.2%. Sanofi pays out 28.1% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 69.9% of their earnings in the form of a dividend.

Risk & Volatility

Sanofi has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Sanofi’s peers have a beta of 0.90, indicating that their average share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sanofi and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sanofi $43.62 billion $13.09 billion 12.76
Sanofi Competitors $8.20 billion $2.68 billion -1.41

Sanofi has higher revenue and earnings than its peers. Sanofi is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Sanofi peers beat Sanofi on 8 of the 15 factors compared.

About Sanofi

Sanofi is a healthcare company, focused on patient needs and engaged in the research, development, manufacture and marketing of therapeutic solutions. The Company’s segments are Pharmaceuticals, Human Vaccines (Vaccines), and Other. The Pharmaceuticals segment comprises the commercial operations of various franchises, including Speciality Care (Rare Diseases, Multiple Sclerosis, and Oncology), Diabetes and Cardiovascular, Established Prescription Products, Consumer Healthcare and Generics, and research and development, production and marketing activities for all of the Company’s pharmaceuticals operations. The Vaccines segment is dedicated to vaccines and includes the commercial operations of the Company’s vaccines division Sanofi Pasteur and dedicated research and development, production and marketing activities for the Company’s vaccines operations. Its Rare Diseases products include Cerezyme, Cerdelga, Myozyme and Lumizyme, Fabrazyme, and Aldurazyme.

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