Critical Review: OvaScience (OVAS) vs. Its Peers

OvaScience (NASDAQ: OVAS) is one of 188 publicly-traded companies in the “Biotechnology & Medical Research” industry, but how does it compare to its peers? We will compare OvaScience to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

55.1% of OvaScience shares are owned by institutional investors. Comparatively, 48.1% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 9.5% of OvaScience shares are owned by insiders. Comparatively, 14.5% of shares of all “Biotechnology & Medical Research” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
OvaScience $650,000.00 -$82.25 million -0.69
OvaScience Competitors $217.40 million -$39.57 million -54.61

OvaScience’s peers have higher revenue and earnings than OvaScience. OvaScience 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.

Volatility & Risk

OvaScience has a beta of 3.49, suggesting that its stock price is 249% more volatile than the S&P 500. Comparatively, OvaScience’s peers have a beta of 1.45, suggesting that their average stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for OvaScience and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OvaScience 1 1 1 0 2.00
OvaScience Competitors 566 2492 6712 134 2.65

OvaScience currently has a consensus target price of $8.00, suggesting a potential upside of 529.92%. As a group, “Biotechnology & Medical Research” companies have a potential upside of 14.12%. Given OvaScience’s higher probable upside, research analysts clearly believe OvaScience is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
OvaScience -20,090.13% -68.71% -60.49%
OvaScience Competitors -4,587.50% -472.71% -43.01%

Summary

OvaScience peers beat OvaScience on 8 of the 13 factors compared.

OvaScience Company Profile

OvaScience, Inc. is a global fertility company. The Company is focused on the discovery, development and commercialization of fertility treatment options for women. The Company’s portfolio of fertility treatment options uses its technology, including methods to identify and isolate Egg precursor (EggPC) cells from a patient’s own ovarian tissue. The Company’s AUGMENT treatment is designed to improve egg health by supplementing a mitochondrial deficiency. With the AUGMENT treatment, energy-producing mitochondria from a patient’s own EggPC cells are added to the patient’s mature eggs during the in vitro fertilization process to supplement the existing mitochondria. Its OvaPrime treatment is a fertility treatment designed to replenish a woman’s ovary by increasing her egg reserve using her own EggPC cells. Its OvaTure treatment is a fertility treatment that seeks to create mature fertilizable eggs in vitro from a woman’s own EggPC cells without the need for hormone hyperstimulation.

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