Critical Contrast: Vericel (NASDAQ:VCEL) versus Travere Therapeutics (NASDAQ:TVTX)

Travere Therapeutics (NASDAQ:TVTX) and Vericel (NASDAQ:VCEL) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Travere Therapeutics and Vericel’s 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%
Vericel	7.91%	6.91%	5.02%

Volatility & Risk

Travere Therapeutics has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Vericel has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Travere Therapeutics and Vericel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travere Therapeutics	1	1	10	0	2.75
Vericel	0	2	4	0	2.67

Travere Therapeutics presently has a consensus price target of $69.50, suggesting a potential upside of 15.85%. Vericel has a consensus price target of $58.40, suggesting a potential upside of 43.81%. Given Vericel’s higher possible upside, analysts clearly believe Vericel is more favorable than Travere Therapeutics.

Earnings & Valuation

This table compares Travere Therapeutics and Vericel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travere Therapeutics	$490.73 million	11.52	-$25.55 million	($0.46)	-130.41
Vericel	$276.26 million	7.53	$16.52 million	$0.47	86.40

Vericel has lower revenue, but higher earnings 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.

Summary

Vericel beats Travere Therapeutics on 7 of the 12 factors compared between the two stocks.

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.

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.