Reviewing Zhengye Biotechnology (NASDAQ:ZYBT) and Trevi Therapeutics (NASDAQ:TRVI)

Trevi Therapeutics (NASDAQ:TRVI) and Zhengye Biotechnology (NASDAQ:ZYBT) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

95.8% of Trevi Therapeutics shares are held by institutional investors. 18.3% of Trevi Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Trevi Therapeutics and Zhengye Biotechnology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevi Therapeutics	1	0	8	2	3.00
Zhengye Biotechnology	1	0	0	0	1.00

Trevi Therapeutics presently has a consensus target price of $21.10, suggesting a potential upside of 92.87%. Given Trevi Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Trevi Therapeutics is more favorable than Zhengye Biotechnology.

Profitability

This table compares Trevi Therapeutics and Zhengye Biotechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trevi Therapeutics	N/A	-31.23%	-29.32%
Zhengye Biotechnology	N/A	N/A	N/A

Valuation & Earnings

This table compares Trevi Therapeutics and Zhengye Biotechnology”s top-line 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	-$47.91 million	($0.37)	-29.57
Zhengye Biotechnology	$25.53 million	1.87	$1.55 million	N/A	N/A

Zhengye Biotechnology has higher revenue and earnings than Trevi Therapeutics.

Summary

Trevi Therapeutics beats Zhengye Biotechnology on 6 of the 10 factors compared between the two stocks.

About Trevi Therapeutics

Trevi Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapy Haduvio for the treatment of chronic cough in idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC) conditions targeting the central and peripheral nervous systems. The company is developing Haduvio, an oral extended-release formulation of nalbuphine, which is in phase 2b Cough Reduction in IPF with nalbuphine ER (CORAL) clinical trial for treatment of chronic cough in patients with IPF; phase 2a Refractory Chronic Cough Improvement Via NAL ER (RIVER) clinical trial for reducing chronic cough in RCC patients; phase 2 clinical trial in patients with pruritus; phase 2b/3 clinical trial in patients with prurigo nodularis. 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 Zhengye Biotechnology

Zhengye Biotechnology Holding Limited is a veterinary vaccine manufacturer which encompasses research, development, manufacturing and sales of veterinary vaccines, with a focus on livestock vaccine principally in China. Zhengye Biotechnology Holding Limited is based in Jilin, China.