NovoCure Limited (NVCR) and Omeros (OMER) Head to Head Review

NovoCure Limited (NASDAQ: NVCR) and Omeros (NASDAQ:OMER) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares NovoCure Limited and Omeros’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NovoCure Limited $125.17 million 12.66 -$69.14 million ($1.10) -16.18
Omeros $53.60 million 17.03 -$48.15 million ($1.46) -13.95

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

Volatility & Risk

NovoCure Limited has a beta of 4.34, suggesting that its share price is 334% more volatile than the S&P 500. Comparatively, Omeros has a beta of 3.57, suggesting that its share price is 257% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NovoCure Limited and Omeros, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovoCure Limited 0 1 6 0 2.86
Omeros 0 1 5 1 3.00

NovoCure Limited currently has a consensus price target of $20.14, indicating a potential upside of 13.16%. Omeros has a consensus price target of $33.38, indicating a potential upside of 63.85%. Given Omeros’ stronger consensus rating and higher possible upside, analysts plainly believe Omeros is more favorable than NovoCure Limited.

Insider & Institutional Ownership

36.8% of NovoCure Limited shares are held by institutional investors. Comparatively, 44.9% of Omeros shares are held by institutional investors. 16.7% of NovoCure Limited shares are held by company insiders. Comparatively, 12.1% of Omeros shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares NovoCure Limited and Omeros’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovoCure Limited -75.91% -69.48% -34.71%
Omeros -83.72% N/A -96.99%

NovoCure Limited Company Profile

NovoCure Limited is a commercial-stage oncology company. The Company is engaged in developing a cancer treatment centered on a therapy called TTFields, the use of electric fields tuned to specific frequencies to disrupt solid tumor cancer cell division. Its TTFields delivery system is used for the treatment of glioblastoma (GBM) and to advance programs testing of TTFields in multiple solid tumor indications through its clinical pipeline. In addition to its clinical and commercial progress in GBM, it is planning or conducting clinical trials evaluating the use of TTFields in brain metastases, non-small-cell lung cancer (NSCLC), pancreatic cancer, ovarian cancer and mesothelioma. TTFields are delivered through a portable, medical device. The complete delivery system, which is designed to allow patients to go about their daily activities while receiving continuous cancer treatment, includes a portable electric field generator, transducer arrays, rechargeable batteries and accessories.

Omeros Company Profile

Omeros Corporation is a biopharmaceutical company. The Company is engaged in discovering, developing and commercializing small-molecule and protein therapeutics for large-market, as well as orphan indications targeting inflammation, coagulopathies and disorders of the central nervous system. Its marketed drug product, Omidria (phenylephrine and ketorolac injection), is used during cataract surgery or intraocular lens (IOL) replacement. Omidria is derived from its PharmacoSurgery platform, which is designed for patients undergoing ophthalmological, arthroscopic, urological and other surgical procedures. Its PharmacoSurgery platform is based on low-dose combinations of the United States Food and Drug Administration (FDA) approved therapeutic agents delivered directly to the surgical site throughout the duration of the procedure to inhibit preemptively inflammation and other problems caused by surgical trauma, and to provide clinical assistances both during and after surgery.

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