Reviewing Shire PLC (NASDAQ:SHPG) and Its Rivals

Shire PLC (NASDAQ: SHPG) is one of 116 public companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its peers? We will compare Shire PLC to similar companies based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.

Dividends

Shire PLC pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Shire PLC pays out 17.2% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.6% and pay out 68.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for Shire PLC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shire PLC 0 7 10 0 2.59
Shire PLC Competitors 866 3827 6911 192 2.55

Shire PLC presently has a consensus price target of $211.00, suggesting a potential upside of 50.33%. As a group, “Pharmaceuticals” companies have a potential upside of 26.17%. Given Shire PLC’s stronger consensus rating and higher probable upside, equities analysts plainly believe Shire PLC is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Shire PLC 10.95% 14.41% 6.60%
Shire PLC Competitors -2,390.70% -60.47% -8.75%

Risk & Volatility

Shire PLC has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Shire PLC’s peers have a beta of 31.77, indicating that their average stock price is 3,077% more volatile than the S&P 500.

Valuation and Earnings

This table compares Shire PLC and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Shire PLC $11.40 billion $327.40 million 26.28
Shire PLC Competitors $8.27 billion $1.10 billion 147.29

Shire PLC has higher revenue, but lower earnings than its peers. Shire PLC 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.

Insider and Institutional Ownership

19.2% of Shire PLC shares are held by institutional investors. Comparatively, 42.0% of shares of all “Pharmaceuticals” companies are held by institutional investors. 2.0% of Shire PLC shares are held by company insiders. Comparatively, 12.2% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Shire PLC beats its peers on 8 of the 15 factors compared.

About Shire PLC

Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company’s segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).

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