Atea Pharmaceuticals (NASDAQ:AVIR) vs. Trevi Therapeutics (NASDAQ:TRVI) Financial Survey

Trevi Therapeutics (NASDAQ:TRVI) and Atea Pharmaceuticals (NASDAQ:AVIR) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Trevi Therapeutics and Atea Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevi Therapeutics	1	0	8	2	3.00
Atea Pharmaceuticals	1	1	0	1	2.33

Trevi Therapeutics presently has a consensus target price of $21.10, indicating a potential upside of 76.72%. Atea Pharmaceuticals has a consensus target price of $6.00, indicating a potential downside of 1.64%. Given Trevi Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Trevi Therapeutics is more favorable than Atea Pharmaceuticals.

Earnings and Valuation

This table compares Trevi Therapeutics and Atea Pharmaceuticals”s top-line revenue, earnings per share 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)	-32.27
Atea Pharmaceuticals	N/A	N/A	-$158.35 million	($1.94)	-3.14

Trevi Therapeutics is trading at a lower price-to-earnings ratio than Atea Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.8% of Trevi Therapeutics shares are owned by institutional investors. Comparatively, 86.7% of Atea Pharmaceuticals shares are owned by institutional investors. 18.3% of Trevi Therapeutics shares are owned by insiders. Comparatively, 18.1% of Atea Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Trevi Therapeutics and Atea Pharmaceuticals’ 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%
Atea Pharmaceuticals	N/A	-46.34%	-42.52%

Risk and Volatility

Trevi Therapeutics has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Atea Pharmaceuticals has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Summary

Trevi Therapeutics beats Atea Pharmaceuticals on 11 of the 12 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 Atea Pharmaceuticals

Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes antiviral therapeutics for patients with viral infections. Its lead product candidate is AT-527, an oral antiviral candidate that is in Phase 3 SUNRISE-3 clinical trial for the treatment of patients with COVID-19. The company also develops bemnifosbuvir in combination with ruzasvir, which is in Phase 2 clinical trial, for the treatment of hepatitis C virus (HCV); and a protease inhibitor for the treatment of COVID-19. It has a license agreement with MSD International GmbH for the development, manufacture, and commercialization of Ruzasvir, an NS5A inhibitor, for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.