Critical Analysis: TG Therapeutics (NASDAQ:TGTX) and Travere Therapeutics (NASDAQ:TVTX)

Travere Therapeutics (NASDAQ:TVTX) and TG Therapeutics (NASDAQ:TGTX) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Travere Therapeutics and TG Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travere Therapeutics	$490.73 million	9.60	-$25.55 million	($0.46)	-108.63
TG Therapeutics	$616.29 million	13.61	$447.18 million	$2.74	20.00

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

Institutional & Insider Ownership

58.6% of TG Therapeutics shares are owned by institutional investors. 4.4% of Travere Therapeutics shares are owned by insiders. Comparatively, 8.9% of TG Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Travere Therapeutics has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, TG Therapeutics has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Profitability

This table compares Travere Therapeutics and TG Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travere Therapeutics	-7.35%	-55.15%	-6.88%
TG Therapeutics	55.22%	73.49%	34.14%

Analyst Ratings

This is a summary of recent ratings and price targets for Travere Therapeutics and TG Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travere Therapeutics	2	0	10	0	2.67
TG Therapeutics	1	2	6	0	2.56

Travere Therapeutics presently has a consensus target price of $69.50, suggesting a potential upside of 39.08%. TG Therapeutics has a consensus target price of $63.00, suggesting a potential upside of 14.98%. Given Travere Therapeutics’ stronger consensus rating and higher possible upside, research analysts plainly believe Travere Therapeutics is more favorable than TG Therapeutics.

Summary

TG Therapeutics beats Travere Therapeutics on 11 of the 14 factors compared between the two stocks.

About Travere Therapeutics

Travere Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and delivers therapies to people living with rare kidney and metabolic diseases. Its products include FILSPARI (sparsentan), a once-daily, oral medication designed to target two critical pathways in the disease progression of IgA Nephropathy (endothelin 1 and angiotensin-II); and Thiola and Thiola EC (tiopronin tablets) for the treatment of cystinuria, a rare genetic cystine transport disorder that causes high cystine levels in the urine and the formation of recurring kidney stones. The company's clinical-stage programs consist of Sparsentan, a novel investigational product candidate, which has been granted Orphan Drug Designation for the treatment of focal segmental glomerulosclerosis in the U.S. and Europe; and Pegtibatinase (TVT-058), a novel investigational human enzyme replacement candidate being evaluated for the treatment of classical homocystinuria. It has a cooperative research and development agreement with National Institutes of Health's National Center for Advancing Translational Sciences and Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for Alagille syndrome. The company was formerly known as Retrophin, Inc. and changed its name to Travere Therapeutics, Inc. in November 2020. Travere Therapeutics, Inc. was incorporated in 2008 and is headquartered in San Diego, California.

About TG Therapeutics

TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell mediated diseases in the United States and internationally. It provides BRIUMVI, an anti-CD20 monoclonal antibody for the treatment of adult patients with relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease in adults. The company's development pipeline comprises Umbralisib, an oral inhibitor of PI3K-delta inhibitor for the treatment of adult patients with relapsed or refractory marginal zone lymphoma and follicular lymphoma; TG-1701 is an orally available and covalently bound Bruton's tyrosine kinase (BTK) inhibitor that exhibits selectivity to BTK in vitro kinase screening; and TG-1801, a bispecific CD47 and CD19 antibody. Its research pipeline includes various investigational medicines. The company has license agreements with LFB Biotechnologies S.A.S; GTC Biotherapeutics; LFB/GTC LLC; Ildong Pharmaceutical Co. Ltd.; Rhizen Pharmaceuticals, S A. for the development and commercialization of umbralisib; Jiangsu Hengrui Medicine Co.; and Novimmune SA, as well as collaboration agreement with Checkpoint Therapeutics, Inc. for the development and commercialization of anti-PD-L1 and anti-GITR antibody research programs in the field of hematological malignancies. TG Therapeutics, Inc. was incorporated in 1993 and is based in Morrisville, North Carolina.