Alliqua Biomedical (NASDAQ:ALQA) versus Novocure (NASDAQ:NVCR) Critical Comparison

Novocure (NASDAQ:NVCR) and Alliqua Biomedical (NASDAQ:ALQA) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Novocure and Alliqua Biomedical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novocure -20.42% -47.23% -16.47%
Alliqua Biomedical -230.50% -71.73% -55.23%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Novocure and Alliqua Biomedical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novocure 0 3 5 0 2.63
Alliqua Biomedical 0 1 0 0 2.00

Novocure presently has a consensus target price of $51.88, suggesting a potential downside of 24.69%. Given Novocure’s stronger consensus rating and higher possible upside, research analysts plainly believe Novocure is more favorable than Alliqua Biomedical.

Valuation & Earnings

This table compares Novocure and Alliqua Biomedical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novocure $248.07 million 26.59 -$63.56 million ($0.69) -99.83
Alliqua Biomedical $2.22 million 7.29 -$8.42 million N/A N/A

Alliqua Biomedical has lower revenue, but higher earnings than Novocure.

Institutional & Insider Ownership

65.3% of Novocure shares are owned by institutional investors. Comparatively, 13.4% of Alliqua Biomedical shares are owned by institutional investors. 5.6% of Novocure shares are owned by company insiders. Comparatively, 13.2% of Alliqua Biomedical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Novocure has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500. Comparatively, Alliqua Biomedical has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Summary

Novocure beats Alliqua Biomedical on 10 of the 12 factors compared between the two stocks.

Novocure Company Profile

Novocure Ltd. is global oncology company, which engages in the development and commercialization of its innovative therapy. It focuses on the commercial adoption of Optune, and its Tumor Treating Fields delivery system, for the treatment of glioblastoma (GBM), and to advance programs testing the efficacy and safety of Optune in multiple solid tumor indications through clinical pipeline. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.

Alliqua Biomedical Company Profile

Alliqua BioMedical, Inc. develops, manufactures, and markets high water content, electron beam cross-linked, and aqueous polymer hydrogels or gels used in wound care, medical diagnostics, transdermal drug delivery, and cosmetics in the United States. It also provides contract manufacturing services to the OEM market. The company is headquartered in Langhorne, Pennsylvania.

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