Analyzing Karuna Therapeutics (KRTX) & The Competition

Karuna Therapeutics (NASDAQ: KRTX) is one of 618 public companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its peers? We will compare Karuna Therapeutics to similar businesses based on the strength of its earnings, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Insider and Institutional Ownership

63.9% of Karuna Therapeutics shares are held by institutional investors. Comparatively, 45.7% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 18.1% of Karuna Therapeutics shares are held by company insiders. Comparatively, 15.5% of shares of all “Pharmaceutical preparations” companies are held by company 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 summary of current recommendations for Karuna Therapeutics and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Karuna Therapeutics 0 0 11 0 3.00
Karuna Therapeutics Competitors 6716 18624 35987 1437 2.51

Karuna Therapeutics currently has a consensus target price of $117.73, indicating a potential upside of 8.61%. As a group, “Pharmaceutical preparations” companies have a potential upside of 37.80%. Given Karuna Therapeutics’ peers higher possible upside, analysts clearly believe Karuna Therapeutics has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Karuna Therapeutics N/A -18.24% -15.83%
Karuna Therapeutics Competitors -3,409.24% -244.96% -33.16%

Earnings and Valuation

This table compares Karuna Therapeutics and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Karuna Therapeutics N/A -$43.96 million -29.45
Karuna Therapeutics Competitors $2.12 billion $260.75 million 0.59

Karuna Therapeutics’ peers have higher revenue and earnings than Karuna Therapeutics. Karuna Therapeutics 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.

Summary

Karuna Therapeutics beats its peers on 7 of the 12 factors compared.

Karuna Therapeutics Company Profile

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs. The company's lead product candidate is KarXT, an oral modulator that is in Phase II clinical trial for the treatment of acute psychosis in patients with schizophrenia, as well as in Phase Ib clinical trial for the treatment of central nervous system disorders, such as cognitive and negative symptoms, Alzheimer's, and pain. It also focuses on developing other muscarinic-targeted drug candidates. Karuna Pharmaceuticals, Inc. has a license agreement with Eli Lilly and Company; and patent license agreement with PureTech Health LLC. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was founded in 2009 and is headquartered in Boston, Massachusetts. Karuna Therapeutics, Inc. operates as a subsidiary of PureTech Health plc.

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