Trevena (NASDAQ: TRVN) and Forward Pharma A/S (NASDAQ:FWP) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Forward Pharma A/S pays an annual dividend of $23.07 per share and has a dividend yield of 553.2%. Trevena does not pay a dividend. Forward Pharma A/S pays out 611.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Trevena and Forward Pharma A/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Trevena||$3.75 million||25.25||-$102.99 million||($1.65)||-0.92|
|Forward Pharma A/S||N/A||N/A||-$33.33 million||$3.77||1.11|
Forward Pharma A/S has lower revenue, but higher earnings than Trevena. Trevena is trading at a lower price-to-earnings ratio than Forward Pharma A/S, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
56.3% of Trevena shares are owned by institutional investors. Comparatively, 21.6% of Forward Pharma A/S shares are owned by institutional investors. 4.6% of Trevena shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Trevena and Forward Pharma A/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forward Pharma A/S||0||2||1||0||2.33|
Trevena currently has a consensus price target of $8.65, indicating a potential upside of 469.08%. Forward Pharma A/S has a consensus price target of $17.00, indicating a potential upside of 307.67%. Given Trevena’s stronger consensus rating and higher probable upside, analysts clearly believe Trevena is more favorable than Forward Pharma A/S.
Volatility & Risk
Trevena has a beta of -0.58, indicating that its stock price is 158% less volatile than the S&P 500. Comparatively, Forward Pharma A/S has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
This table compares Trevena and Forward Pharma A/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Forward Pharma A/S||N/A||N/A||N/A|
Trevena beats Forward Pharma A/S on 7 of the 13 factors compared between the two stocks.
Trevena Inc. is a biopharmaceutical company, which is engaged in developing various therapies. The Company is developing OLINVO, a u-receptor G protein pathway selective modulator (u-GPS) for the management of moderate-to-severe acute pain where intravenous (IV) administration is preferred. It is focused on commercializing it in the United States for use in acute care settings, such as hospitals and ambulatory surgery centers. It is also developing TRV250, a G protein biased ligand targeting the o-receptor, as a compound with a non-narcotic mechanism for the treatment of migraine. TRV250 also may have utility in a range of other central nervous system (CNS) indications. It is focused on commencing a Phase I study of TRV250 in the United Kingdom. Its ABLE product platform is a collection of biological information, in vitro assays, know-how and expertise that it uses to identify unique G protein coupled receptors (GPCR)-targeted biased ligands with various pharmaceutical properties.
About Forward Pharma A/S
Forward Pharma A/S is a clinical-stage biopharmaceutical company. The Company is engaged in the development of FP187, a formulation of dimethyl fumarate (DMF) for the treatment of several inflammatory and neurological indications, including multiple sclerosis (MS). The Company’s clinical candidate, FP187, is under development for the treatment of relapsing remitting MS (RRMS) and other immune disorders, such as psoriasis. The Company’s DMF formulation, FP187, employs over two methods, which improves the release of DMF by reducing the peaks of monomethyl fumarate (MMF) in the bloodstream while maintaining overall DMF exposure levels, which, in turn, controls DMF’s side effects. The Company has conducted a pre-clinical program and has completed several Phase I and Phase II clinical trials for the product FP187.
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