Contrasting Psychemedics (PMD) & Its Rivals

Psychemedics (NASDAQ: PMD) is one of 42 publicly-traded companies in the “Medical laboratories” industry, but how does it compare to its peers? We will compare Psychemedics to related companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, valuation and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Psychemedics -6.42% -11.16% -5.91%
Psychemedics Competitors -143.44% -14.71% -9.57%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Psychemedics and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Psychemedics 0 0 0 0 N/A
Psychemedics Competitors 263 893 1375 39 2.46

As a group, “Medical laboratories” companies have a potential upside of 49.79%. Given Psychemedics’ peers higher possible upside, analysts plainly believe Psychemedics has less favorable growth aspects than its peers.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Psychemedics $21.36 million -$3.86 million -31.37
Psychemedics Competitors $933.00 million $35.52 million -7.80

Psychemedics’ peers have higher revenue and earnings than Psychemedics. Psychemedics 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.

Risk and Volatility

Psychemedics has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Psychemedics’ peers have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

40.6% of Psychemedics shares are held by institutional investors. Comparatively, 51.7% of shares of all “Medical laboratories” companies are held by institutional investors. 13.3% of Psychemedics shares are held by insiders. Comparatively, 18.1% of shares of all “Medical laboratories” companies are held 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.

Summary

Psychemedics peers beat Psychemedics on 7 of the 10 factors compared.

About Psychemedics

Psychemedics Corp. engages in the provision of drug testing services through the analysis of hair samples. It specializes in a five panel drug testing process for cocaine, opioids, Phenyclidine, amphetamines, and marijuana. It offers workplace, school, and personal drug testing services. The company was founded by Werner Baumgartner and Annette Baumgartner on September 24, 1986 and is headquartered in Acton, MA.

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