Analyzing AstraZeneca (NYSE:AZN) & Its Competitors

AstraZeneca (NYSE: AZN) is one of 104 public companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare AstraZeneca to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

AstraZeneca has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, AstraZeneca’s peers have a beta of 34.16, meaning that their average share price is 3,316% more volatile than the S&P 500.

Institutional & Insider Ownership

14.8% of AstraZeneca shares are owned by institutional investors. Comparatively, 44.8% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 11.4% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
AstraZeneca $23.00 billion $3.50 billion 11.54
AstraZeneca Competitors $8.17 billion $1.09 billion 141.60

AstraZeneca has higher revenue and earnings than its peers. AstraZeneca 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.

Analyst Ratings

This is a summary of current ratings and price targets for AstraZeneca and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AstraZeneca 1 7 11 0 2.53
AstraZeneca Competitors 873 3797 6780 181 2.54

AstraZeneca presently has a consensus price target of $36.60, suggesting a potential upside of 13.66%. As a group, “Pharmaceuticals” companies have a potential upside of 34.82%. Given AstraZeneca’s peers stronger consensus rating and higher probable upside, analysts clearly believe AstraZeneca has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
AstraZeneca 15.90% 34.02% 8.37%
AstraZeneca Competitors -2,402.47% -68.58% -7.25%

Dividends

AstraZeneca pays an annual dividend of $1.37 per share and has a dividend yield of 4.3%. AstraZeneca pays out 49.1% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 65.3% of their earnings in the form of a dividend. AstraZeneca is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

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

AstraZeneca Company Profile

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.

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