Contrasting Trevi Therapeutics (NASDAQ:TRVI) and Acerus Pharmaceuticals (OTCMKTS:TRLPF)

Trevi Therapeutics (NASDAQ:TRVI – Get Rating) and Acerus Pharmaceuticals (OTCMKTS:TRLPF – Get Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trevi Therapeutics	N/A	-65.00%	-46.18%
Acerus Pharmaceuticals	-254.66%	-346.72%	-94.54%

Risk and Volatility

Trevi Therapeutics has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Acerus Pharmaceuticals has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500.

Institutional and Insider Ownership

87.5% of Trevi Therapeutics shares are held by institutional investors. Comparatively, 0.0% of Acerus Pharmaceuticals shares are held by institutional investors. 39.5% of Trevi Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Trevi Therapeutics and Acerus Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trevi Therapeutics	N/A	N/A	-$33.94 million	($0.78)	-3.62
Acerus Pharmaceuticals	$7.38 million	7.71	-$18.79 million	N/A	N/A

Acerus Pharmaceuticals has higher revenue and earnings than Trevi Therapeutics.

Analyst Ratings

This is a summary of recent recommendations for Trevi Therapeutics and Acerus Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevi Therapeutics	0	0	4	0	3.00
Acerus Pharmaceuticals	0	0	0	0	N/A

Trevi Therapeutics currently has a consensus target price of $8.25, suggesting a potential upside of 192.55%. Given Trevi Therapeutics’ higher probable upside, equities analysts clearly believe Trevi Therapeutics is more favorable than Acerus Pharmaceuticals.

Summary

Trevi Therapeutics beats Acerus Pharmaceuticals on 7 of the 10 factors compared between the two stocks.

About Trevi Therapeutics

(Get Rating)

Trevi Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of Haduvio to treat serious neurologically mediated conditions. The company is developing Haduvio, an oral extended-release formulation of nalbuphine, which is in phase IIb/III clinical trial for the treatment of chronic pruritus, chronic cough in patients with idiopathic pulmonary fibrosis. 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.

About Acerus Pharmaceuticals

(Get Rating)

Acerus Pharmaceuticals Corporation, a specialty pharmaceutical company, focuses on the development, manufacture, marketing, and distribution of pharmaceutical products for men's and women's health. The company offers Natesto, a nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism; Estrace, an oral tablet for the symptomatic relief of menopausal symptoms; and UriVarx, a natural health product that helps reduce symptoms of hyperactive bladder, such as daytime urinary frequency, urgency, and nocturia. It also engages in developing Lidbree, a short acting lidocaine formulation delivered through a proprietary device into the vaginal mucosal tissue; Stendra, a PDE5 inhibitor for the treatment of erectile dysfunction; Elegant vaginal moisturizer, which provides comfort to women suffering from vaginal dryness; and Elegant pH, a pH balanced vaginal product; Gynoflor, an ultra-low dose vaginal estrogen combined with a probiotic for the treatment of vaginal atrophy, restoration of vaginal flora, and treatment of certain vaginal infections; and Tefina, a clinical stage product for women with female sexual dysfunction. Acerus Pharmaceuticals Corporation sells products through its salesforce in Canada; and through a network of licensed distributors in the United States and internationally. The company was formerly known as Trimel Pharmaceuticals Corporation and changed its name to Acerus Pharmaceuticals Corporation in September 2015. Acerus Pharmaceuticals Corporation was founded in 2008 and is headquartered in Mississauga, Canada.