Trevi Therapeutics (NASDAQ:TRVI) versus Amgen (NASDAQ:AMGN) Critical Review

Amgen (NASDAQ:AMGNGet Free Report) and Trevi Therapeutics (NASDAQ:TRVIGet Free Report) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Amgen has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Trevi Therapeutics has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Amgen and Trevi Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amgen 2 14 14 1 2.45
Trevi Therapeutics 1 0 9 2 3.00

Amgen presently has a consensus price target of $356.62, indicating a potential upside of 3.09%. Trevi Therapeutics has a consensus price target of $21.60, indicating a potential upside of 45.95%. Given Trevi Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Trevi Therapeutics is more favorable than Amgen.

Insider & Institutional Ownership

76.5% of Amgen shares are held by institutional investors. Comparatively, 95.8% of Trevi Therapeutics shares are held by institutional investors. 0.9% of Amgen shares are held by insiders. Comparatively, 18.3% of Trevi Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Amgen and Trevi Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amgen $36.75 billion 5.08 $7.71 billion $14.23 24.31
Trevi Therapeutics N/A N/A -$42.76 million ($0.32) -46.25

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

Profitability

This table compares Amgen and Trevi Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amgen 20.98% 148.37% 13.23%
Trevi Therapeutics N/A -25.49% -24.15%

Summary

Amgen beats Trevi Therapeutics on 8 of the 14 factors compared between the two stocks.

About Amgen

(Get Free Report)

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for men and women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout. It also markets other products, including Neulasta, MVASI, AMJEVITA/AMGEVITA, TEZSPIRE, Parsabiv, Aimovig, LUMAKRAS/LUMYKRAS, EPOGEN, KANJINTI, TAVNEOS, RAVICTI, UPLIZNA and PROCYSBI. The company serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. The company has collaboration agreements with AstraZeneca plc for the development and commercialization of TEZSPIRE; Novartis Pharma AG to develop and commercialize Aimovig; UCB for the development and commercialization of EVENITY; Kyowa Kirin Co., Ltd. for rocatinlimab development and commercialization; and BeiGene, Ltd. for oncology products expansion and development. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.

About Trevi Therapeutics

(Get Free Report)

Trevi Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapy Haduvio for the treatment of chronic cough in idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC) conditions targeting the central and peripheral nervous systems. The company is developing Haduvio, an oral extended-release formulation of nalbuphine, which is in phase 2b Cough Reduction in IPF with nalbuphine ER (CORAL) clinical trial for treatment of chronic cough in patients with IPF; phase 2a Refractory Chronic Cough Improvement Via NAL ER (RIVER) clinical trial for reducing chronic cough in RCC patients; phase 2 clinical trial in patients with pruritus; phase 2b/3 clinical trial in patients with prurigo nodularis. It has a license agreement with Endo Pharmaceuticals Inc. to develop and commercialize products incorporating nalbuphine hydrochloride in any formulation. The company was incorporated in 2011 and is headquartered in New Haven, Connecticut.

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