Adicet Bio (NASDAQ:ACET) and Travere Therapeutics (NASDAQ:TVTX) Critical Comparison

Adicet Bio (NASDAQ:ACETGet Rating) and Travere Therapeutics (NASDAQ:TVTXGet Rating) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Adicet Bio and Travere Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adicet Bio -93.18% -13.61% -11.97%
Travere Therapeutics -88.46% -70.33% -25.86%

Institutional and Insider Ownership

76.2% of Adicet Bio shares are owned by institutional investors. 33.9% of Adicet Bio shares are owned by company insiders. Comparatively, 4.7% of Travere Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Adicet Bio and Travere Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adicet Bio $9.73 million 43.62 -$62.00 million ($1.15) -9.23
Travere Therapeutics $227.49 million 6.75 -$180.09 million ($3.27) -7.39

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Adicet Bio and Travere Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adicet Bio 0 0 7 0 3.00
Travere Therapeutics 0 1 5 0 2.83

Adicet Bio currently has a consensus price target of $29.29, suggesting a potential upside of 176.02%. Travere Therapeutics has a consensus price target of $35.00, suggesting a potential upside of 44.75%. Given Adicet Bio’s stronger consensus rating and higher possible upside, research analysts clearly believe Adicet Bio is more favorable than Travere Therapeutics.

Risk & Volatility

Adicet Bio has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Travere Therapeutics has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Summary

Adicet Bio beats Travere Therapeutics on 11 of the 14 factors compared between the two stocks.

About Adicet Bio (Get Rating)

Adicet Bio, Inc., a biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for cancer and other diseases. The company offers gamma delta T cells engineered with chimeric antigen receptors and T cell receptor-like antibodies to enhance selective tumor targeting, facilitate innate and adaptive anti-tumor immune response, and enhance persistence for durable activity in patients. Its lead product in pipeline includes ADI-001, which is in Phase I clinical study for the treatment of non-Hodgkin's lymphoma. The company also engages in the development of ADI-002, which is undergoing preclinical studies for the treatment of various solid tumors. Adicet Bio, Inc. is based in Boston, Massachusetts.

About Travere Therapeutics (Get Rating)

Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, commercialization, and delivering of therapies for the treatment of rare diseases. Its marketed products include Chenodal, a synthetic oral form of chenodeoxycholic acid for the treatment of radiolucent stones in gallbladders; Cholbam, a cholic acid capsule to treat pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, as well as for adjunctive treatment of patients with peroxisomal disorders; and Thiola and Thiola EC, a tiopronin tablet for the treatment of homozygous cystinuria. The company's product candidates also consist of Sparsentan, which is in Phase III clinical trial for the treatment of focal segmental glomerulosclerosis and immunoglobulin A nephropathy; and TVT-058, a novel investigational human enzyme replacement candidate, which is in Phase I/II clinical trials for the treatment of classical homocystinuria. It has a cooperative research and development agreement with National Institutes of Health's National Center for Advancing Translational Sciences and patient advocacy organizations, CDG Care, and Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for NGLY1 deficiency and Alagille syndrome. The company was formerly known as Retrophin, Inc. and changed its name to Travere Therapeutics, Inc. in November 2020. Travere Therapeutics, Inc. was incorporated in 2008 and is headquartered in San Diego, California.

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