Verrica Pharmaceuticals (NASDAQ:VRCA) and Theravance Biopharma (NASDAQ:TBPH) 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, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Volatility & Risk
Verrica Pharmaceuticals has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Profitability
This table compares Verrica Pharmaceuticals and Theravance Biopharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Verrica Pharmaceuticals | N/A | -54.53% | -40.42% |
| Theravance Biopharma | -345.16% | N/A | -51.60% |
Valuation and Earnings
This table compares Verrica Pharmaceuticals and Theravance Biopharma's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Verrica Pharmaceuticals | N/A | N/A | $-28,210,000.00 | ($1.13) | -12.15 |
| Theravance Biopharma | $73.41 million | 18.91 | $-236,460,000.00 | ($4.25) | -5.01 |
Verrica Pharmaceuticals has higher earnings, but lower revenue than Theravance Biopharma. Verrica Pharmaceuticals is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Verrica Pharmaceuticals and Theravance Biopharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Verrica Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
| Theravance Biopharma | 0 | 0 | 7 | 0 | 3.00 |
Verrica Pharmaceuticals presently has a consensus price target of $17.75, indicating a potential upside of 29.28%. Theravance Biopharma has a consensus price target of $33.2857, indicating a potential upside of 56.42%. Given Theravance Biopharma's stronger consensus rating and higher probable upside, analysts plainly believe Theravance Biopharma is more favorable than Verrica Pharmaceuticals.
Institutional & Insider Ownership
34.0% of Verrica Pharmaceuticals shares are owned by institutional investors. Comparatively, 80.4% of Theravance Biopharma shares are owned by institutional investors. 40.2% of Verrica Pharmaceuticals shares are owned by company insiders. Comparatively, 5.9% of Theravance Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Theravance Biopharma beats Verrica Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
