Contrasting Travere Therapeutics (NASDAQ:TVTX) and Adicet Bio (NASDAQ:ACET)

Travere Therapeutics (NASDAQ:TVTXGet Rating) and Adicet Bio (NASDAQ:ACETGet Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Travere Therapeutics and Adicet Bio’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Travere Therapeutics $227.49 million 6.70 -$180.09 million ($3.27) -7.34
Adicet Bio $9.73 million 48.30 -$62.00 million ($1.15) -10.22

Adicet Bio has lower revenue, but higher earnings than Travere Therapeutics. Adicet Bio is trading at a lower price-to-earnings ratio than Travere Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Travere Therapeutics has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Adicet Bio has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Travere Therapeutics and Adicet Bio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travere Therapeutics 0 0 4 0 3.00
Adicet Bio 0 0 7 0 3.00

Travere Therapeutics presently has a consensus price target of $42.00, suggesting a potential upside of 75.00%. Adicet Bio has a consensus price target of $29.29, suggesting a potential upside of 149.24%. Given Adicet Bio’s higher possible upside, analysts plainly believe Adicet Bio is more favorable than Travere Therapeutics.

Profitability

This table compares Travere Therapeutics and Adicet Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travere Therapeutics -88.46% -70.33% -25.86%
Adicet Bio -93.18% -13.61% -11.97%

Institutional and Insider Ownership

76.2% of Adicet Bio shares are owned by institutional investors. 4.7% of Travere Therapeutics shares are owned by company insiders. Comparatively, 33.9% of Adicet Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Adicet Bio beats Travere Therapeutics on 10 of the 12 factors compared between the two stocks.

Travere Therapeutics Company Profile (Get Rating)

Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, commercialization, and delivering of therapies for the treatment of rare diseases. Its marketed products include Chenodal, a synthetic oral form of chenodeoxycholic acid for the treatment of radiolucent stones in gallbladders; Cholbam, a cholic acid capsule to treat pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, as well as for adjunctive treatment of patients with peroxisomal disorders; and Thiola and Thiola EC, a tiopronin tablet for the treatment of homozygous cystinuria. The company's product candidates also consist of Sparsentan, which is in Phase III clinical trial for the treatment of focal segmental glomerulosclerosis and immunoglobulin A nephropathy; and TVT-058, a novel investigational human enzyme replacement candidate, which is in Phase I/II clinical trials for the treatment of classical homocystinuria. It has a cooperative research and development agreement with National Institutes of Health's National Center for Advancing Translational Sciences and patient advocacy organizations, CDG Care, and Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for NGLY1 deficiency and Alagille syndrome. The company was formerly known as Retrophin, Inc. and changed its name to Travere Therapeutics, Inc. in November 2020. Travere Therapeutics, Inc. was incorporated in 2008 and is headquartered in San Diego, California.

Adicet Bio Company Profile (Get Rating)

Adicet Bio, Inc., a biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for cancer and other diseases. The company offers gamma delta T cells engineered with chimeric antigen receptors and T cell receptor-like antibodies to enhance selective tumor targeting, facilitate innate and adaptive anti-tumor immune response, and enhance persistence for durable activity in patients. Its lead product in pipeline includes ADI-001, which is in Phase I clinical study for the treatment of non-Hodgkin's lymphoma. The company also engages in the development of ADI-002, which is undergoing preclinical studies for the treatment of various solid tumors. Adicet Bio, Inc. is based in Boston, Massachusetts.

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