Head to Head Analysis: Revance Therapeutics (RVNC) and Intercept Pharmaceuticals (ICPT)

Revance Therapeutics (NASDAQ: RVNC) and Intercept Pharmaceuticals (NASDAQ:ICPT) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares Revance Therapeutics and Intercept Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Revance Therapeutics $300,000.00 4,030.09 -$89.27 million ($3.81) -8.87
Intercept Pharmaceuticals $24.95 million 55.20 -$412.83 million ($14.80) -3.71

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Revance Therapeutics and Intercept Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revance Therapeutics 0 1 7 0 2.88
Intercept Pharmaceuticals 2 9 10 0 2.38

Revance Therapeutics currently has a consensus price target of $45.00, indicating a potential upside of 33.14%. Intercept Pharmaceuticals has a consensus price target of $140.45, indicating a potential upside of 155.97%. Given Intercept Pharmaceuticals’ higher probable upside, analysts plainly believe Intercept Pharmaceuticals is more favorable than Revance Therapeutics.

Institutional and Insider Ownership

76.7% of Revance Therapeutics shares are held by institutional investors. Comparatively, 73.8% of Intercept Pharmaceuticals shares are held by institutional investors. 18.9% of Revance Therapeutics shares are held by insiders. Comparatively, 4.5% of Intercept Pharmaceuticals shares are held 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.

Risk and Volatility

Revance Therapeutics has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Intercept Pharmaceuticals has a beta of -2.05, suggesting that its stock price is 305% less volatile than the S&P 500.

Profitability

This table compares Revance Therapeutics and Intercept Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Revance Therapeutics -37,161.00% -67.85% -57.91%
Intercept Pharmaceuticals -344.74% -176.51% -57.15%

Summary

Revance Therapeutics beats Intercept Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Revance Therapeutics

Revance Therapeutics, Inc. is a clinical-stage biotechnology company. The Company is focused on the development, manufacturing and commercialization of botulinum toxin products for multiple aesthetic and therapeutic indications. Its peptide technology enables delivery of botulinum toxin type A through two investigational drug product candidates, DaxibotulinumtoxinA for Injection (RT002), or RT002 injectable, and DaxibotulinumtoxinA Topical Gel (RT001), or RT001 topical. It is engaged in the clinical development for RT002 injectable. RT002 injectable utilizes botulinum toxin-peptide complex in a saline-based formulation. In RT002 injectable, the peptide interacts with both extracellular structures and cell surface receptors in the targeted muscle. This interaction restricts the toxin molecule to the target site and reduces unwanted spread to other neighboring muscles. It is focusing on developing RT002 for the treatment of glabellar lines, cervical dystonia and plantar fasciitis.

About Intercept Pharmaceuticals

Intercept Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics to treat non-viral, progressive liver diseases. The Company’s product candidates have the potential to treat orphan and more prevalent diseases for which there are limited therapeutic solutions. The Company’s product candidate, obeticholic acid (OCA), is a bile acid analog, a chemical substance that has a structure based on a naturally occurring human bile acid that selectively binds to and activates the farnesoid X receptor (FXR). In addition to OCA, it is developing other bile acid analog compounds targeting FXR and a second dedicated bile acid receptor called TGR5, which is a target of interest for the treatment of type 2 diabetes and other gastrointestinal indications. The Company is also developing other products INT-767 for the treatment of fibrosis and INT-777 for the treatment of type 2 diabetes.

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