Financial Analysis: Assembly Biosciences (NASDAQ:ASMB) versus Travere Therapeutics (NASDAQ:TVTX)

Assembly Biosciences (NASDAQ:ASMBGet Free Report) and Travere Therapeutics (NASDAQ:TVTXGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

19.9% of Assembly Biosciences shares are owned by institutional investors. 4.1% of Assembly Biosciences shares are owned by insiders. Comparatively, 3.8% of Travere Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Assembly Biosciences has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Travere Therapeutics has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Assembly Biosciences and Travere Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assembly Biosciences 0 1 0 0 2.00
Travere Therapeutics 0 5 10 0 2.67

Assembly Biosciences currently has a consensus price target of $1.50, suggesting a potential upside of 48.51%. Travere Therapeutics has a consensus price target of $17.92, suggesting a potential upside of 111.36%. Given Travere Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Travere Therapeutics is more favorable than Assembly Biosciences.

Profitability

This table compares Assembly Biosciences and Travere Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assembly Biosciences N/A -116.42% -95.89%
Travere Therapeutics -41.52% -208.22% -42.89%

Valuation & Earnings

This table compares Assembly Biosciences and Travere Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Assembly Biosciences $6.25 million 10.63 -$93.09 million ($1.42) -0.71
Travere Therapeutics $212.02 million 3.01 -$278.48 million ($1.46) -5.81

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

Summary

Assembly Biosciences beats Travere Therapeutics on 8 of the 14 factors compared between the two stocks.

About Assembly Biosciences

(Get Free Report)

Assembly Biosciences, Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for the treatment of hepatitis B virus (HBV) infection in the United States. The company's next-generation HBV core inhibitors include ABI-4334, which is in Phase 1a studies for the treatment of HBV; and ABI-H3733, which is in Phase 1b clinical study. It is also involved in novel small molecule approaches for HBV and hepatitis delta virus (HDV) comprising an orally bioavailable HBV/HDV entry inhibitor and liver-focused interferon-a receptor agonist. In addition, the company develops Herpesvirus programs, such as ABI-5366 HSV-2, a long-acting helicase inhibitor; and pan-herpes non-nucleoside polymerase inhibitors for transplant-associated infections. Further, Assembly Biosciences, Inc. has collaboration agreement with BeiGene, Ltd. to develop and commercialize the novel core inhibitor product candidates for chronic HBV infection in the People's Republic of China, Hong Kong, Taiwan, and Macau; and clinical trial collaboration agreement with Arbutus Biopharma Corporation to conduct a randomized, multi-center, and open-label clinical trials, as well as agreement with Antios Therapeutics, Inc. for triple combination therapy. The company also has license agreement with Indiana University Research and Technology Corporation for HBV research, as well as a partnership with Gilead Sciences, Inc. to develop next-generation therapeutics for serious viral diseases. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014. Assembly Biosciences, Inc. was incorporated in 2005 and is headquartered in South San Francisco, California.

About Travere Therapeutics

(Get Free Report)

Travere Therapeutics, Inc., an integrated biopharmaceutical company, focuses on identifying, developing, and delivering therapies to people living with rare kidney and metabolic diseases. Its approved products include FILSPARI (sparsentan), a once-daily, oral medication is designed to target two critical pathways (endothelin 1 and angiotensin-II) in the disease progression of IgA; and Thiola and Thiola EC (tiopronin tablets) for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria. The company's clinical-stage programs consist of Sparsentan, a novel investigational product candidate, which has 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 patient advocacy organizations, 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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