Neoleukin Therapeutics (NASDAQ:NLTX) and Trevi Therapeutics (NASDAQ:TRVI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Neoleukin Therapeutics and Trevi Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Neoleukin Therapeutics | N/A | -26.95% | -25.39% |
| Trevi Therapeutics | N/A | -51.74% | -46.55% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Neoleukin Therapeutics and Trevi Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Neoleukin Therapeutics | 0 | 0 | 6 | 0 | 3.00 |
| Trevi Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
Neoleukin Therapeutics currently has a consensus price target of $21.50, indicating a potential upside of 53.57%. Trevi Therapeutics has a consensus price target of $18.00, indicating a potential upside of 157.88%. Given Trevi Therapeutics' higher probable upside, analysts plainly believe Trevi Therapeutics is more favorable than Neoleukin Therapeutics.
Institutional & Insider Ownership
59.3% of Neoleukin Therapeutics shares are held by institutional investors. Comparatively, 78.3% of Trevi Therapeutics shares are held by institutional investors. 7.1% of Neoleukin Therapeutics shares are held by company insiders. Comparatively, 47.3% of Trevi Therapeutics shares are held 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.
Valuation & Earnings
This table compares Neoleukin Therapeutics and Trevi Therapeutics' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Neoleukin Therapeutics | $25 million | 21.49 | $-69,440,000.00 | ($0.75) | -18.67 |
| Trevi Therapeutics | N/A | N/A | $-26,050,000.00 | ($2.28) | -3.06 |
Trevi Therapeutics has lower revenue, but higher earnings than Neoleukin Therapeutics. Neoleukin Therapeutics is trading at a lower price-to-earnings ratio than Trevi Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Neoleukin Therapeutics has a beta of -4.41, meaning that its share price is 541% less volatile than the S&P 500. Comparatively, Trevi Therapeutics has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Summary
Trevi Therapeutics beats Neoleukin Therapeutics on 6 of the 11 factors compared between the two stocks.
