Vericel (NASDAQ:VCEL – Get Free Report) and Travere Therapeutics (NASDAQ:TVTX – Get Free Report) are both mid-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
Volatility and Risk
Vericel has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Travere Therapeutics has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Valuation and Earnings
This table compares Vericel and Travere Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vericel | $276.26 million | 7.31 | $16.52 million | $0.47 | 83.91 |
| Travere Therapeutics | $490.73 million | 10.92 | -$25.55 million | ($0.46) | -123.59 |
Vericel has higher earnings, but lower revenue than Travere Therapeutics. Travere Therapeutics is trading at a lower price-to-earnings ratio than Vericel, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Vericel and Travere Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vericel | 0 | 2 | 4 | 0 | 2.67 |
| Travere Therapeutics | 1 | 1 | 10 | 0 | 2.75 |
Vericel presently has a consensus target price of $58.40, suggesting a potential upside of 48.07%. Travere Therapeutics has a consensus target price of $69.50, suggesting a potential upside of 22.25%. Given Vericel’s higher probable upside, equities analysts plainly believe Vericel is more favorable than Travere Therapeutics.
Profitability
This table compares Vericel and Travere Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vericel | 7.91% | 6.91% | 5.02% |
| Travere Therapeutics | -7.35% | -55.15% | -6.88% |
Summary
Vericel beats Travere Therapeutics on 7 of the 12 factors compared between the two stocks.
About Vericel
Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in North America. The company markets autologous cell therapy products comprising MACI, an autologous cultured chondrocytes on porcine collagen membrane for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns; and NexoBrid, a biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.
About Travere Therapeutics
Travere Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and delivers therapies to people living with rare kidney and metabolic diseases. Its products include FILSPARI (sparsentan), a once-daily, oral medication designed to target two critical pathways in the disease progression of IgA Nephropathy (endothelin 1 and angiotensin-II); and Thiola and Thiola EC (tiopronin tablets) for the treatment of cystinuria, a rare genetic cystine transport disorder that causes high cystine levels in the urine and the formation of recurring kidney stones. The company's clinical-stage programs consist of Sparsentan, a novel investigational product candidate, which has been granted Orphan Drug Designation for the treatment of focal segmental glomerulosclerosis in the U.S. and Europe; and Pegtibatinase (TVT-058), a novel investigational human enzyme replacement candidate being evaluated 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 Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for 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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