Nuvo Pharmaceuticals (OTCMKTS:MRVFF) vs. Gemini Therapeutics (NASDAQ:GMTX) Critical Review

Nuvo Pharmaceuticals (OTCMKTS:MRVFF) and Gemini Therapeutics (NASDAQ:GMTX) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Risk & Volatility

Nuvo Pharmaceuticals has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Gemini Therapeutics has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nuvo Pharmaceuticals and Gemini Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvo Pharmaceuticals	$54.98 million	0.20	-$25.70 million	($0.12)	-8.16
Gemini Therapeutics	N/A	N/A	-$71.87 million	($1.00)	-45.07

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

Institutional and Insider Ownership

75.4% of Gemini Therapeutics shares are held by institutional investors. 7.0% of Nuvo Pharmaceuticals shares are held by insiders. Comparatively, 12.9% of Gemini Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Nuvo Pharmaceuticals and Gemini Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvo Pharmaceuticals	0	0	0	0	N/A
Gemini Therapeutics	0	0	0	0	N/A

Profitability

This table compares Nuvo Pharmaceuticals and Gemini Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvo Pharmaceuticals	20.88%	-1,996.22%	14.25%
Gemini Therapeutics	N/A	-38.78%	-35.88%

Summary

Nuvo Pharmaceuticals beats Gemini Therapeutics on 7 of the 10 factors compared between the two stocks.

About Nuvo Pharmaceuticals

Nuvo Pharmaceuticals, Inc. is a pharmaceutical company, which is engaged in developing innovative therapeutic pharmaceutical products. It operates through the following segments: Commercial Business, Production and Service Business, and Licensing and Royalty Business. The Commercial Business segment includes Blexten, Cambia, the canadian business for Resultz and Suvexx, and mature assets. The Production and Service Business segment supplies Pennsaid to Horizon for the U.S. market and is engaged in ongoing partnering efforts for Pennsaid. The Licensing and Royalty Business segment engages in the selling of Vimovo. The company was founded on August 22, 1983 and is headquartered in Mississauga, Canada.

About Gemini Therapeutics

Gemini Therapeutics, Inc., a clinical stage precision medicine company, engages in developing various therapeutic compounds for treating genetically defined age-related macular degeneration (AMD). Its lead candidate is GEM103, a recombinant form of the human complement factor H protein to treat dry AMD patients. The company also develops GEM307 for treatment of systemic diseases. Gemini Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.