Critical Comparison: THERAPIX BIOSCI/S (NASDAQ:TRPX) vs. Novan (NASDAQ:NOVN)

THERAPIX BIOSCI/S (NASDAQ:TRPX) and Novan (NASDAQ:NOVN) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for THERAPIX BIOSCI/S and Novan, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
THERAPIX BIOSCI/S 0 0 0 0 N/A
Novan 0 1 1 0 2.50

Novan has a consensus target price of $1.00, indicating a potential upside of 104.46%. Given Novan’s higher probable upside, analysts plainly believe Novan is more favorable than THERAPIX BIOSCI/S.

Earnings & Valuation

This table compares THERAPIX BIOSCI/S and Novan’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
THERAPIX BIOSCI/S N/A N/A -$4.79 million N/A N/A
Novan $4.90 million 7.92 -$30.64 million ($0.80) -0.61

THERAPIX BIOSCI/S has higher earnings, but lower revenue than Novan.

Volatility & Risk

THERAPIX BIOSCI/S has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Novan has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.

Profitability

This table compares THERAPIX BIOSCI/S and Novan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
THERAPIX BIOSCI/S N/A N/A N/A
Novan -594.59% N/A -53.34%

Insider and Institutional Ownership

0.8% of THERAPIX BIOSCI/S shares are held by institutional investors. Comparatively, 23.1% of Novan shares are held by institutional investors. 3.0% of Novan shares are held by 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.

Summary

Novan beats THERAPIX BIOSCI/S on 5 of the 9 factors compared between the two stocks.

THERAPIX BIOSCI/S Company Profile

Therapix Biosciences Ltd., a specialty clinical-stage pharmaceutical company, develops drugs based on cannabinoid molecules. Its drug development programs include THX-110 for the treatment of Tourette syndrome, Obstructive Sleep Apnea, and pain; THX-130 for the treatment of Mild Cognitive Impairment and Traumatic Brain Injury; THX-150 for the treatment of infectious diseases; and THX-160 for the treatment of pain. Therapix Biosciences Ltd. has a product development agreement with Cure Pharmaceutical to develop cannabinoid-based product for sleep disorders. The company was formerly known as NasVax Ltd. and changed its name to Therapix Biosciences Ltd. in November 2013. Therapix Biosciences Ltd. was founded in 2004 and is headquartered in Givatayim, Israel.

Novan Company Profile

Novan, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. Its clinical stage product candidates include SB204, a topical monotherapy that is in Phase III pivotal clinical trials for the treatment of acne vulgaris; and SB206, a topical antiviral gel, which is in Phase III pivotal trials for the treatment of patients with external genital warts, and Phase II clinical trial for the treatment of molluscum contagiosum. The company's clinical stage product candidates comprise SB208, a topical antifungal gel that is in Phase II proof-of-concept trial for the treatment of athlete's foot and fungal nail infections; and SB414, a topical cream, which is in Phase Ib trial for the treatment of inflammatory skin diseases, such as psoriasis and atopic dermatitis. It has a license agreement with Sato Pharmaceutical Co., Ltd. Novan, Inc. has a strategic alliance with Orion Corporation to manufacture topical nitric oxide-releasing product candidates. Novan, Inc. was founded in 2006 and is headquartered in Morrisville, North Carolina.

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