Financial Analysis: Minerva Neurosciences (NERV) versus Its Rivals

Minerva Neurosciences (NASDAQ: NERV) is one of 287 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its rivals? We will compare Minerva Neurosciences to similar businesses based on the strength of its risk, earnings, dividends, profitability, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

Minerva Neurosciences has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Minerva Neurosciences’ rivals have a beta of 2.48, meaning that their average share price is 148% more volatile than the S&P 500.

Insider and Institutional Ownership

73.7% of Minerva Neurosciences shares are owned by institutional investors. Comparatively, 49.8% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 21.6% of Minerva Neurosciences shares are owned by insiders. Comparatively, 16.8% of shares of all “Bio Therapeutic Drugs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Minerva Neurosciences and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Minerva Neurosciences 0 0 3 0 3.00
Minerva Neurosciences Competitors 939 3387 11889 239 2.69

Minerva Neurosciences currently has a consensus price target of $16.00, indicating a potential upside of 199.07%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 41.60%. Given Minerva Neurosciences’ stronger consensus rating and higher possible upside, equities analysts plainly believe Minerva Neurosciences is more favorable than its rivals.

Profitability

This table compares Minerva Neurosciences and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Minerva Neurosciences N/A -37.31% -27.90%
Minerva Neurosciences Competitors -5,383.23% -82.24% -35.15%

Valuation and Earnings

This table compares Minerva Neurosciences and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Minerva Neurosciences N/A -$31.04 million -4.82
Minerva Neurosciences Competitors $290.27 million $35.99 million 54.34

Minerva Neurosciences’ rivals have higher revenue and earnings than Minerva Neurosciences. Minerva Neurosciences is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Minerva Neurosciences beats its rivals on 8 of the 13 factors compared.

Minerva Neurosciences Company Profile

Minerva Neurosciences, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of a portfolio of product candidates to treat patients suffering from central nervous system (CNS) diseases. The Company’s product portfolio and indications include MIN-101 for the treatment of schizophrenia; MIN-202, for the treatment of insomnia disorder and major depressive disorder (MDD); MIN-117, for the treatment of MDD, and MIN-301 for the treatment of Parkinson’s disease. MIN-101 is a compound that blocks serotonin receptors and sigma receptors, two receptors in the brain that are involved in the regulation of mood, cognition, sleep and anxiety. MIN-117 is meant to block a specific subtype of serotonin receptor called 5-hydroxytryptamine type 1A (5-HT1A). MIN-202 is a selective orexin 2 receptor antagonist. MIN-301 is a soluble recombinant form of the Neuregulin-1b1 (NRG-1b1) protein, for the treatment of Parkinson’s disease.

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