Conatus Pharmaceuticals (NASDAQ: CNAT) and Trevena (NASDAQ:TRVN) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Volatility and Risk
Conatus Pharmaceuticals has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Trevena has a beta of -0.58, meaning that its stock price is 158% less volatile than the S&P 500.
This table compares Conatus Pharmaceuticals and Trevena’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Conatus Pharmaceuticals and Trevena’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Conatus Pharmaceuticals||$800,000.00||175.88||-$29.73 million||($0.81)||-5.79|
|Trevena||$3.75 million||29.07||-$102.99 million||($1.65)||-1.06|
Conatus Pharmaceuticals has higher earnings, but lower revenue than Trevena. Conatus Pharmaceuticals is trading at a lower price-to-earnings ratio than Trevena, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
36.8% of Conatus Pharmaceuticals shares are owned by institutional investors. Comparatively, 56.1% of Trevena shares are owned by institutional investors. 13.9% of Conatus Pharmaceuticals shares are owned by insiders. Comparatively, 4.6% of Trevena shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings for Conatus Pharmaceuticals and Trevena, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Conatus Pharmaceuticals currently has a consensus target price of $14.00, indicating a potential upside of 198.51%. Trevena has a consensus target price of $8.65, indicating a potential upside of 394.29%. Given Trevena’s higher possible upside, analysts plainly believe Trevena is more favorable than Conatus Pharmaceuticals.
Conatus Pharmaceuticals beats Trevena on 8 of the 14 factors compared between the two stocks.
Conatus Pharmaceuticals Company Profile
Conatus Pharmaceuticals Inc. is a biotechnology company. The Company focuses on the development and commercialization of medicines to treat liver disease. The Company operates through commercialization and development of pharmaceutical products segment. The Company is engaged in developing emricasan, which is an orally active pan-caspase protease inhibitor for the treatment of patients with chronic liver disease. Emricasan has the potential to interrupt the progression of liver disease and provide treatment options in multiple areas of liver disease. Emricasan is designed to slow or halt the progression of chronic liver disease caused by fibrosis and cirrhosis. Emricasan works by inhibiting caspases, which are a family of related enzymes that plays as modulators of critical cellular functions, including functions that result in apoptosis and inflammation.
Trevena Company Profile
Trevena Inc. is a biopharmaceutical company, which is engaged in developing various therapies. The Company is developing OLINVO, a u-receptor G protein pathway selective modulator (u-GPS) for the management of moderate-to-severe acute pain where intravenous (IV) administration is preferred. It is focused on commercializing it in the United States for use in acute care settings, such as hospitals and ambulatory surgery centers. It is also developing TRV250, a G protein biased ligand targeting the o-receptor, as a compound with a non-narcotic mechanism for the treatment of migraine. TRV250 also may have utility in a range of other central nervous system (CNS) indications. It is focused on commencing a Phase I study of TRV250 in the United Kingdom. Its ABLE product platform is a collection of biological information, in vitro assays, know-how and expertise that it uses to identify unique G protein coupled receptors (GPCR)-targeted biased ligands with various pharmaceutical properties.
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