NEW YORK ( TheStreet) -- Momenta Pharmaceuticals (Nasdaq: MNTA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • MNTA's very impressive revenue growth greatly exceeded the industry average of 6.6%. Since the same quarter one year prior, revenues leaped by 69.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MNTA's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 25.95, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, MOMENTA PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MOMENTA PHARMACEUTICALS INC is currently very high, coming in at 70.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 68.60% significantly outperformed against the industry average.

Momenta Pharmaceuticals, Inc., a biotechnology company, specializes in the characterization and process engineering of complex molecules. These complex molecules include proteins; polypeptides; and cell surface polysaccharides, such as heparan-sulfate proteoglycans (HSPGs). The company has a P/E ratio of 3.4, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Momenta has a market cap of $770.7 million and is part of the health care sector and drugs industry. Shares are up 8.6% year to date as of the close of trading on Friday.

You can view the full Momenta Ratings Report or get investment ideas from our investment research center.
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