Provention Bio (NASDAQ:PRVB) and Revance Therapeutics (NASDAQ:RVNC) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Risk & Volatility
Provention Bio has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, Revance Therapeutics has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Profitability
This table compares Provention Bio and Revance Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Provention Bio | N/A | -67.66% | -62.27% |
| Revance Therapeutics | -5,818.87% | -85.72% | -44.85% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Provention Bio and Revance Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Provention Bio | 0 | 1 | 5 | 0 | 2.83 |
| Revance Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
Provention Bio currently has a consensus price target of $19.75, suggesting a potential upside of 143.53%. Revance Therapeutics has a consensus price target of $37.75, suggesting a potential upside of 38.68%. Given Provention Bio's higher probable upside, analysts clearly believe Provention Bio is more favorable than Revance Therapeutics.
Earnings and Valuation
This table compares Provention Bio and Revance Therapeutics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Provention Bio | N/A | N/A | $-43,280,000.00 | ($1.06) | -7.65 |
| Revance Therapeutics | $410,000.00 | 4,739.13 | $-159,430,000.00 | ($3.67) | -7.42 |
Provention Bio has higher earnings, but lower revenue than Revance Therapeutics. Provention Bio is trading at a lower price-to-earnings ratio than Revance Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
39.4% of Provention Bio shares are owned by institutional investors. Comparatively, 74.4% of Revance Therapeutics shares are owned by institutional investors. 14.4% of Provention Bio shares are owned by insiders. Comparatively, 4.8% of Revance Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Provention Bio beats Revance Therapeutics on 9 of the 13 factors compared between the two stocks.
