Biohaven (NYSE:BHVN) and Verrica Pharmaceuticals (NASDAQ:VRCA) Critical Comparison

Biohaven (NYSE:BHVNGet Free Report) and Verrica Pharmaceuticals (NASDAQ:VRCAGet Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Biohaven and Verrica Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Biohaven $462.51 million 7.78 -$570.28 million ($7.17) -6.26
Verrica Pharmaceuticals $9.03 million 26.97 -$24.49 million ($1.07) -5.41

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

Insider and Institutional Ownership

89.6% of Biohaven shares are held by institutional investors. Comparatively, 34.7% of Verrica Pharmaceuticals shares are held by institutional investors. 12.4% of Biohaven shares are held by company insiders. Comparatively, 41.5% of Verrica Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Biohaven and Verrica Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biohaven 0 0 5 0 3.00
Verrica Pharmaceuticals 0 0 4 0 3.00

Biohaven currently has a consensus price target of $39.17, indicating a potential downside of 12.75%. Verrica Pharmaceuticals has a consensus price target of $11.00, indicating a potential upside of 89.98%. Given Verrica Pharmaceuticals’ higher possible upside, analysts clearly believe Verrica Pharmaceuticals is more favorable than Biohaven.

Profitability

This table compares Biohaven and Verrica Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Biohaven N/A -110.06% -85.63%
Verrica Pharmaceuticals -1,507.90% -75.68% -56.22%

Risk & Volatility

Biohaven has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Verrica Pharmaceuticals has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Summary

Verrica Pharmaceuticals beats Biohaven on 8 of the 12 factors compared between the two stocks.

About Biohaven

(Get Free Report)

Biohaven Ltd., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing therapies for patients with debilitating neurological and neuropsychiatric diseases in the United States. The company's pipeline products include BHV-7000, a potassium channel activator for the treatment of focal epilepsy; BHV-7010, a Kv7 channel modulator for the treatment of different neurological diseases; Troriluzole, a tripeptide prodrug that is in Phase 3 clinical trial for the treatment of neurological and neuropsychiatric illnesses; BHV-5500, a low-trapping glutamate N-methyl-D-aspartate receptor antagonist for neuropathic pain; and Verdiperstat, an oral myeloperoxidase inhibitor, which is in Phase 3 clinical trial for the treatment of neurodegenerative diseases. It also offers Taldefgrobep Alfa, an anti-myostatin adnectin, which is in Phase 3 clinical trial for the treatment of spinal muscle atrophy; and BHV-1100 that is in Phase 1a/1b clinical trial for multiple myeloma patients. The company was formerly known as Biohaven Research Ltd and changed its name to Biohaven Ltd. in September 2022. Biohaven Ltd. was incorporated in 2022 and is headquartered in New Haven, Connecticut. Biohaven Ltd. is a subsidiary of Biohaven Pharmaceutical Holding Company Ltd.

About Verrica Pharmaceuticals

(Get Free Report)

Verrica Pharmaceuticals Inc., a clinical-stage dermatology therapeutics company, develops medications for the treatment of skin diseases in the United States. The company's lead product candidate includes VP-102 for the treatment of molluscum contagiosum; that has completed Phase II clinical trial for the treatment of external genital warts; and which is in Phase II clinical trial for treating common warts. It is also developing VP-315, an oncolytic peptide-based injectable therapy for the treatment of dermatology oncologic conditions, including basal cell carcinoma; and cantharidin-based product candidate, VP-103 for treating plantar warts. The company has a collaboration and license agreement with Torii Pharmaceutical Co., Ltd. for the development and commercialization of its product candidates for the treatment of molluscum contagiosum and common warts in Japan, including VP-102; and a license agreement with Lytix Biopharma AS to develop and commercialize VP-315 for dermatological oncology indications, including non-metastatic melanoma and non-metastatic Merkel cell carcinoma. Verrica Pharmaceuticals Inc. was incorporated in 2013 and is headquartered in West Chester, Pennsylvania.

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