Financial Analysis: Rani Therapeutics (RANI) vs. Its Peers

Rani Therapeutics (NASDAQ:RANI) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its peers? We will compare Rani Therapeutics to related businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rani Therapeutics	N/A	-104.60%	-65.17%
Rani Therapeutics Competitors	-9,046.59%	-199.78%	-30.61%

Analyst Ratings

This is a summary of current recommendations and price targets for Rani Therapeutics and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rani Therapeutics	1	0	4	0	2.60
Rani Therapeutics Competitors	9789	15067	45332	1572	2.54

Rani Therapeutics presently has a consensus target price of $8.33, indicating a potential upside of 1,341.75%. As a group, “Biotechnology” companies have a potential upside of 94.64%. Given Rani Therapeutics’ stronger consensus rating and higher possible upside, research analysts plainly believe Rani Therapeutics is more favorable than its peers.

Institutional and Insider Ownership

30.2% of Rani Therapeutics shares are held by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are held by institutional investors. 26.7% of Rani Therapeutics shares are held by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Rani Therapeutics and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rani Therapeutics	$1.63 million	-$29.67 million	-2.14
Rani Therapeutics Competitors	$691.14 million	$10.43 million	-10.10

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

Risk and Volatility

Rani Therapeutics has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Rani Therapeutics’ peers have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.

Summary

Rani Therapeutics beats its peers on 7 of the 13 factors compared.

About Rani Therapeutics

Rani Therapeutics Holdings, Inc. operates as a clinical stage biotherapeutics company that develops orally administered biologics for patients, physicians, and healthcare systems in the United States. The company develops the RaniPill capsule, a drug-agnostic oral delivery platform to deliver a variety of drug substances, including oligonucleotides, peptides, proteins, and antibodies. Its product pipeline includes RT-102, a parathyroid hormone that is in Phase I clinical trial for the treatment of osteoporosis; RT-105, an anti-TNF-alpha antibody that is in preclinical studies to treat psoriatic arthritis; RT-110, a parathyroid hormone for the treatment of hypoparathyroidism; and RT-111, an ustekinumab biosimilar for the treatment of various inflammatory conditions. Rani Therapeutics Holdings, Inc. was founded in 2012 and is headquartered in San Jose, California.