Analyzing Travere Therapeutics (TVTX) and Its Rivals

Travere Therapeutics (NASDAQ:TVTX) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it compare to its peers? We will compare Travere Therapeutics to similar companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Risk and Volatility

Travere Therapeutics has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Travere Therapeutics’ peers have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Travere Therapeutics and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travere Therapeutics	2	0	10	0	2.67
Travere Therapeutics Competitors	9773	15031	45238	1571	2.54

Travere Therapeutics presently has a consensus target price of $69.50, suggesting a potential upside of 37.92%. As a group, “Biotechnology” companies have a potential upside of 95.66%. Given Travere Therapeutics’ peers higher possible upside, analysts clearly believe Travere Therapeutics has less favorable growth aspects than its peers.

Profitability

This table compares Travere Therapeutics and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travere Therapeutics	-7.35%	-55.15%	-6.88%
Travere Therapeutics Competitors	-9,054.31%	-198.21%	-30.53%

Institutional & Insider Ownership

47.9% of shares of all “Biotechnology” companies are held by institutional investors. 4.4% of Travere Therapeutics shares are held by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Travere Therapeutics and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Travere Therapeutics	$490.73 million	-$25.55 million	-109.54
Travere Therapeutics Competitors	$689.46 million	$10.37 million	-10.05

Travere Therapeutics’ peers have higher revenue and earnings than Travere Therapeutics. Travere Therapeutics is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Travere Therapeutics peers beat Travere Therapeutics on 7 of the 13 factors compared.

Travere Therapeutics Company Profile

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.