Financial Comparison: Adicet Bio (NASDAQ:ACET) & Trevena (NASDAQ:TRVN)

Trevena (NASDAQ:TRVN) and Adicet Bio (NASDAQ:ACET) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Trevena and Adicet Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trevena	$443,000.00	2.29	-$40.29 million	($47.04)	-0.02
Adicet Bio	$24.99 million	2.30	-$142.66 million	($1.30)	-0.53

Trevena has higher earnings, but lower revenue than Adicet Bio. Adicet Bio is trading at a lower price-to-earnings ratio than Trevena, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Trevena has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Adicet Bio has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

13.6% of Trevena shares are owned by institutional investors. Comparatively, 83.9% of Adicet Bio shares are owned by institutional investors. 2.7% of Trevena shares are owned by company insiders. Comparatively, 7.8% of Adicet Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Trevena and Adicet Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevena	0	1	0	0	2.00
Adicet Bio	0	2	3	0	2.60

Trevena presently has a consensus price target of $5.00, suggesting a potential upside of 372.14%. Adicet Bio has a consensus price target of $7.50, suggesting a potential upside of 981.31%. Given Adicet Bio’s stronger consensus rating and higher possible upside, analysts clearly believe Adicet Bio is more favorable than Trevena.

Profitability

This table compares Trevena and Adicet Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trevena	N/A	N/A	-119.55%
Adicet Bio	N/A	-53.85%	-46.45%

Summary

Adicet Bio beats Trevena on 10 of the 13 factors compared between the two stocks.

About Trevena

Trevena, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel medicines for patients affected by central nervous system disorders. Its lead product candidates include OLINVYK (Oliceridine) injection, a G protein biased mu-opioid receptor (MOR) ligand for the management of moderate-to-severe acute pain; TRV250, a G protein biased delta-opioid receptor agonist for the treatment of acute migraine; TRV734, a small molecule G protein biased ligand of the MOR for the treatment of moderate-to-severe acute and chronic pain; and TRV045, a novel S1P modulator for managing chronic pain. Trevena, Inc. was incorporated in 2007 and is based in Chesterbrook, Pennsylvania.

About Adicet Bio

Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.