Analyzing Sagimet Biosciences (SGMT) and The Competition

Sagimet Biosciences (NASDAQ:SGMT) is one of 1,075 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it compare to its peers? We will compare Sagimet Biosciences to similar businesses based on the strength of its institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Risk and Volatility

Sagimet Biosciences has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, Sagimet Biosciences’ peers have a beta of 3.80, indicating that their average share price is 280% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sagimet Biosciences and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sagimet Biosciences	$2.00 million	-$27.88 million	-2.27
Sagimet Biosciences Competitors	$9.91 billion	$136.15 million	-6.10

Sagimet Biosciences’ peers have higher revenue and earnings than Sagimet Biosciences. Sagimet Biosciences 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sagimet Biosciences	N/A	-23.63%	-22.91%
Sagimet Biosciences Competitors	-3,399.87%	-235.11%	-32.77%

Insider & Institutional Ownership

87.9% of Sagimet Biosciences shares are owned by institutional investors. Comparatively, 44.0% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 17.6% of Sagimet Biosciences shares are owned by company insiders. Comparatively, 13.6% of shares of all “Pharmaceutical preparations” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sagimet Biosciences	0	1	4	0	2.80
Sagimet Biosciences Competitors	8633	22621	50915	1396	2.54

Sagimet Biosciences currently has a consensus price target of $22.40, indicating a potential upside of 591.36%. As a group, “Pharmaceutical preparations” companies have a potential upside of 231.34%. Given Sagimet Biosciences’ stronger consensus rating and higher possible upside, equities analysts plainly believe Sagimet Biosciences is more favorable than its peers.

Summary

Sagimet Biosciences beats its peers on 9 of the 13 factors compared.

Sagimet Biosciences Company Profile

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional metabolic pathways in the United States. The company’s lead drug candidate is Denifanstat, a once-daily pill and selective FASN inhibitor for the treatment of metabolic dysfunction associated steatohepatitis. It also develops TVB-3567, a FASN inhibitor for the treatment of acne; and other oncology programs. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.