Travere Therapeutics (NASDAQ:TVTX) and Sarepta Therapeutics (NASDAQ:SRPT) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Volatility and Risk
Travere Therapeutics has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Sarepta Therapeutics has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.
Profitability
This table compares Travere Therapeutics and Sarepta Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Travere Therapeutics | -40.24% | -29.27% | -12.25% |
| Sarepta Therapeutics | -121.30% | -61.62% | -23.02% |
Analyst Ratings
This is a breakdown of recent ratings for Travere Therapeutics and Sarepta Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Travere Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Sarepta Therapeutics | 1 | 9 | 13 | 0 | 2.52 |
Travere Therapeutics presently has a consensus target price of $44.3333, indicating a potential upside of 77.69%. Sarepta Therapeutics has a consensus target price of $150.4762, indicating a potential upside of 109.58%. Given Sarepta Therapeutics' higher probable upside, analysts clearly believe Sarepta Therapeutics is more favorable than Travere Therapeutics.
Valuation & Earnings
This table compares Travere Therapeutics and Sarepta Therapeutics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Travere Therapeutics | $175.34 million | 8.60 | $-146,430,000.00 | ($3.46) | -7.21 |
| Sarepta Therapeutics | $380.83 million | 14.97 | $-715,080,000.00 | ($9.71) | -7.39 |
Travere Therapeutics has higher earnings, but lower revenue than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than Travere Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.7% of Sarepta Therapeutics shares are held by institutional investors. 4.6% of Travere Therapeutics shares are held by insiders. Comparatively, 5.9% of Sarepta Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Sarepta Therapeutics beats Travere Therapeutics on 8 of the 14 factors compared between the two stocks.
