Stemline Therapeutics (NASDAQ: STML) and Trevena (NASDAQ:TRVN) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Stemline Therapeutics and Trevena, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stemline Therapeutics 0 0 6 0 3.00
Trevena 0 0 11 0 3.00

Stemline Therapeutics presently has a consensus target price of $32.60, suggesting a potential upside of 262.22%. Trevena has a consensus target price of $11.73, suggesting a potential upside of 405.49%. Given Trevena’s higher possible upside, analysts plainly believe Trevena is more favorable than Stemline Therapeutics.

Volatility and Risk

Stemline Therapeutics has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, Trevena has a beta of -0.54, suggesting that its share price is 154% less volatile than the S&P 500.

Institutional and Insider Ownership

54.2% of Stemline Therapeutics shares are owned by institutional investors. Comparatively, 64.4% of Trevena shares are owned by institutional investors. 16.7% of Stemline Therapeutics shares are owned by insiders. Comparatively, 4.6% of Trevena shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Stemline Therapeutics and Trevena’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stemline Therapeutics -3,864.20% -60.51% -52.80%
Trevena N/A -117.85% -86.74%

Earnings & Valuation

This table compares Stemline Therapeutics and Trevena’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stemline Therapeutics $1.14 million 184.55 -$44.34 million ($2.31) -3.90
Trevena $1.88 million 71.95 -$105.20 million ($1.97) -1.18

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

About Stemline Therapeutics

Stemline Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing oncology therapeutics. The Company is developing approximately three clinical stage product candidates, including SL-401, SL-701 and SL-801. SL-401 is a targeted therapy directed to the interleukin-3 receptor (IL-3R) (CD123), present on a range of hematologic cancers. SL-401 consists of IL-3 recombinantly fused to a truncated diphtheria toxin payload. SL-701 is an immunotherapy designed to activate the immune system to attack tumors. SL-701 comprises various short synthetic peptides that correspond to epitopes of targets, including IL-13 receptor subunit alpha-2 (IL-13Ra2), ephrin type-A receptor 2 (EphA2) and survivin, present on brain cancer. SL-801 is an oral, small molecule that reversibly inhibits Exportin-1 (XPO1), also known as Chromosome Region Maintenance-1 (CRM-1), a nuclear transport protein.

About Trevena

Trevena Inc. is a biopharmaceutical company, which is engaged in developing various therapies. The Company is developing OLINVO, a u-receptor G protein pathway selective modulator (u-GPS) for the management of moderate-to-severe acute pain where intravenous (IV) administration is preferred. It is focused on commercializing it in the United States for use in acute care settings, such as hospitals and ambulatory surgery centers. It is also developing TRV250, a G protein biased ligand targeting the o-receptor, as a compound with a non-narcotic mechanism for the treatment of migraine. TRV250 also may have utility in a range of other central nervous system (CNS) indications. It is focused on commencing a Phase I study of TRV250 in the United Kingdom. Its ABLE product platform is a collection of biological information, in vitro assays, know-how and expertise that it uses to identify unique G protein coupled receptors (GPCR)-targeted biased ligands with various pharmaceutical properties.

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