Analyzing 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 competitors? We will compare Sagimet Biosciences to similar companies based on the strength of its analyst recommendations, valuation, dividends, risk, institutional ownership, profitability and earnings.

Risk & Volatility

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

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, 13.6% of shares of all “Pharmaceutical preparations” companies are owned by 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 Recommendations

This is a summary of current ratings and target prices for Sagimet Biosciences and its competitors, as reported 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	8639	22634	50938	1396	2.54

Sagimet Biosciences currently has a consensus price target of $22.40, suggesting a potential upside of 576.74%. As a group, “Pharmaceutical preparations” companies have a potential upside of 221.47%. Given Sagimet Biosciences’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Sagimet Biosciences is more favorable than its competitors.

Earnings and Valuation

This table compares Sagimet Biosciences and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sagimet Biosciences	$2.00 million	-$27.88 million	-2.31
Sagimet Biosciences Competitors	$9.91 billion	$136.15 million	-4.38

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

Profitability

This table compares Sagimet Biosciences and its competitors’ 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 competitors 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.