Anika Therapeutics (NASDAQ:ANIK) and Novocure (NASDAQ:NVCR) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
95.1% of Anika Therapeutics shares are held by institutional investors. Comparatively, 56.1% of Novocure shares are held by institutional investors. 8.1% of Anika Therapeutics shares are held by insiders. Comparatively, 15.3% of Novocure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Anika Therapeutics and Novocure, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Anika Therapeutics presently has a consensus price target of $41.00, suggesting a potential downside of 3.89%. Novocure has a consensus price target of $48.33, suggesting a potential downside of 4.93%. Given Anika Therapeutics’ higher probable upside, research analysts clearly believe Anika Therapeutics is more favorable than Novocure.
Earnings & Valuation
This table compares Anika Therapeutics and Novocure’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Anika Therapeutics||$113.42 million||5.48||$31.81 million||$1.96||21.77|
|Novocure||$177.03 million||26.68||-$61.66 million||($0.70)||-72.63|
Anika Therapeutics has higher earnings, but lower revenue than Novocure. Novocure is trading at a lower price-to-earnings ratio than Anika Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Anika Therapeutics has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Novocure has a beta of 3.29, indicating that its share price is 229% more volatile than the S&P 500.
This table compares Anika Therapeutics and Novocure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Anika Therapeutics beats Novocure on 8 of the 14 factors compared between the two stocks.
About Anika Therapeutics
Anika Therapeutics, Inc., together with its subsidiaries, provides orthopedic medicines for patients with degenerative orthopedic diseases and traumatic conditions in the United States and internationally. The company develops, manufactures, and commercializes therapeutic products based on its proprietary hyaluronic acid (HA) technology. Its orthobiologics products comprise ORTHOVISC, ORTHOVISC mini, MONOVISC, and CINGAL for the treatment of osteoarthritis of the knee; HYALOFAST, a biodegradable support for human bone marrow mesenchymal stem cells used for cartilage regeneration and as an adjunct for microfracture surgery; HYALONECT, a resorbable knitted fabric mesh; HYALOSS used to mix blood/bone grafts to form a paste for bone regeneration; and HYALOGLIDE, an ACP gel used in tenolysis treatment. The company's dermal products include wound care products that comprise HYALOMATRIX and HYALOFILL for the treatment of complex wounds, such as burns and ulcers, and for use in connection with the regeneration of skin; and ELEVESS, an aesthetic dermatology product. Its surgical products comprise HYALOBARRIER, a post-operative adhesion barrier for use in the abdomino-pelvic area; INCERT, a HA product used for the prevention of post-surgical spinal adhesions; MEROGEL, a woven fleece nasal packing; and MEROGEL INJECTABLE, a viscous hydrogel. The company also offers ophthalmic products, including injectable HA products that are used as viscoelastic agents in ophthalmic surgical procedures, such as cataract extraction and intraocular lens implantation; and veterinary products, which include HYVISC, an injectable HA product for the treatment of joint dysfunction in horses. Anika Therapeutics, Inc. has a strategic collaboration with the Institute for Applied Life Sciences at the University of Massachusetts Amherst to develop a therapy for rheumatoid arthritis. The company was founded in 1983 and is headquartered in Bedford, Massachusetts.
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.
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