Contrasting Phibro Animal Health (NASDAQ:PAHC) & Trevi Therapeutics (NASDAQ:TRVI)

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

Profitability

This table compares Trevi Therapeutics and Phibro Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trevi Therapeutics	N/A	-63.31%	-57.06%
Phibro Animal Health	1.75%	25.35%	6.21%

Volatility & Risk

Trevi Therapeutics has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Phibro Animal Health has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trevi Therapeutics and Phibro Animal Health”s gross 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	-$29.07 million	($0.44)	-9.25
Phibro Animal Health	$1.02 billion	1.03	$2.42 million	$0.48	53.69

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

Institutional & Insider Ownership

95.8% of Trevi Therapeutics shares are owned by institutional investors. Comparatively, 99.3% of Phibro Animal Health shares are owned by institutional investors. 24.4% of Trevi Therapeutics shares are owned by insiders. Comparatively, 50.1% of Phibro Animal Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Trevi Therapeutics and Phibro Animal Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevi Therapeutics	0	0	8	2	3.20
Phibro Animal Health	2	2	0	0	1.50

Trevi Therapeutics presently has a consensus target price of $9.31, suggesting a potential upside of 128.81%. Phibro Animal Health has a consensus target price of $21.00, suggesting a potential downside of 18.51%. Given Trevi Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Trevi Therapeutics is more favorable than Phibro Animal Health.

Summary

Phibro Animal Health beats Trevi Therapeutics on 9 of the 14 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 Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.