Critical Review: Trevena (NASDAQ:TRVN) versus PTC Therapeutics (NASDAQ:PTCT)

Trevena (NASDAQ:TRVN) and PTC Therapeutics (NASDAQ:PTCT) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Volatility & Risk

Trevena has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, PTC Therapeutics has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Valuation and Earnings

This table compares Trevena and PTC Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trevena $5.73 million 12.12 -$30.78 million ($0.42) -1.79
PTC Therapeutics $264.73 million 9.59 -$128.08 million ($1.84) -22.38

Trevena has higher earnings, but lower revenue than PTC Therapeutics. PTC Therapeutics is trading at a lower price-to-earnings ratio than Trevena, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trevena and PTC Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trevena N/A -64.05% -40.52%
PTC Therapeutics -74.86% -31.92% -12.06%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Trevena and PTC Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trevena 0 0 1 0 3.00
PTC Therapeutics 0 2 7 0 2.78

Trevena presently has a consensus target price of $3.50, indicating a potential upside of 366.67%. PTC Therapeutics has a consensus target price of $51.67, indicating a potential upside of 25.47%. Given Trevena’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Trevena is more favorable than PTC Therapeutics.

Institutional & Insider Ownership

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24.2% of Trevena shares are held by institutional investors. Comparatively, 93.7% of PTC Therapeutics shares are held by institutional investors. 3.4% of Trevena shares are held by company insiders. Comparatively, 7.0% of PTC Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Trevena beats PTC Therapeutics on 8 of the 14 factors compared between the two stocks.

Trevena Company Profile

Trevena, Inc., a biopharmaceutical company, focuses on the development and commercialization of treatment options that target and treat diseases affecting the central nervous system. Its product candidates include Oliceridine injection, a G protein biased mu-opioid receptor (MOR) ligand that has completed Phase III clinical trials for the management of moderate-to-severe acute pain where intravenous administration is warranted; TRV250, a G protein biased delta- opioid receptor ligand, which is in Phase I clinical study for the treatment of acute migraine; TRV734, a small molecule G protein biased ligand of the MOR that has completed Phase I clinical study for the treatment of moderate-to-severe acute and chronic pain; TRV027 for the treatment of acute heart failure; and TRV045, a novel S1P modulator for managing chronic pain. The company was founded in 2007 and is headquartered in Chesterbrook, Pennsylvania.

PTC Therapeutics Company Profile

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for the treatment of rare disorders. The company offers Translarna (ataluren) and Emflaza (deflazacort) for the treatment of nonsense mutation Duchenne muscular dystrophy in ambulatory patients. It is developing Translarna, which is in Phase 2 clinical study for the treatment of nonsense mutation aniridia and nonsense mutation Dravet syndrome/CDKL5; and RG7916 and RO7034067 for the treatment of patients with spinal muscular atrophy, as well as PTC596 and PTC299, a small molecule dihydrooratate dehydrogenase (DHODH) inhibitor that inhibits de novo pyrimidine nucleotide synthesis, which is in Phase 1 clinical development stage to treat cancer patients. The company is also developing gene therapy product candidate that include PTC-AADC for the treatment of Aromatic L-amino acid decarboxylase deficiency. It has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., and the Spinal Muscular Atrophy Foundation to develop and commercialize compounds identified under its spinal muscular atrophy sponsored research program; research collaboration with Massachusetts General Hospital for the treatment of rare genetic disorders resulting from pre-mRNA; and Akcea Therapeutics, Inc. to commercialize Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean. PTC Therapeutics, Inc. was founded in 1998 and is headquartered in South Plainfield, New Jersey.

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