Reviewing Sagimet Biosciences (SGMT) and Its Rivals

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sagimet Biosciences and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sagimet Biosciences	0	1	4	0	2.80
Sagimet Biosciences Competitors	8616	22593	50884	1392	2.54

Sagimet Biosciences currently has a consensus target price of $22.40, suggesting a potential upside of 600.00%. As a group, “Pharmaceutical preparations” companies have a potential upside of 226.24%. Given Sagimet Biosciences’ stronger consensus rating and higher probable upside, research analysts plainly believe Sagimet Biosciences is more favorable than its rivals.

Valuation and Earnings

This table compares Sagimet Biosciences and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sagimet Biosciences	$2.00 million	-$27.88 million	-2.24
Sagimet Biosciences Competitors	$9.89 billion	$136.15 million	-6.25

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

Institutional and Insider 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 insiders. Comparatively, 13.7% of shares of all “Pharmaceutical preparations” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & 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’ rivals have a beta of 3.79, indicating that their average share price is 279% more volatile than the S&P 500.

Profitability

This table compares Sagimet Biosciences and its rivals’ 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%

Summary

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

About Sagimet Biosciences

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.