Alpha Tau Medical (NASDAQ:DRTS – Get Free Report) and NovoCure (NASDAQ:NVCR – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Analyst Recommendations
This is a summary of recent recommendations for Alpha Tau Medical and NovoCure, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alpha Tau Medical | 0 | 0 | 3 | 0 | 3.00 |
NovoCure | 0 | 2 | 4 | 0 | 2.67 |
Alpha Tau Medical presently has a consensus target price of $8.00, indicating a potential upside of 263.64%. NovoCure has a consensus target price of $26.17, indicating a potential upside of 56.31%. Given Alpha Tau Medical’s stronger consensus rating and higher possible upside, research analysts clearly believe Alpha Tau Medical is more favorable than NovoCure.
Risk and Volatility
Institutional and Insider Ownership
2.7% of Alpha Tau Medical shares are held by institutional investors. Comparatively, 84.6% of NovoCure shares are held by institutional investors. 39.5% of Alpha Tau Medical shares are held by insiders. Comparatively, 6.3% of NovoCure shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Alpha Tau Medical and NovoCure’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alpha Tau Medical | N/A | -33.75% | -26.78% |
NovoCure | -30.67% | -45.68% | -14.59% |
Earnings & Valuation
This table compares Alpha Tau Medical and NovoCure”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alpha Tau Medical | N/A | N/A | -$29.16 million | ($0.41) | -5.37 |
NovoCure | $549.96 million | 3.28 | -$207.04 million | ($1.81) | -9.25 |
Alpha Tau Medical has higher earnings, but lower revenue than NovoCure. NovoCure is trading at a lower price-to-earnings ratio than Alpha Tau Medical, indicating that it is currently the more affordable of the two stocks.
Summary
Alpha Tau Medical beats NovoCure on 9 of the 13 factors compared between the two stocks.
About Alpha Tau Medical
Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.
About NovoCure
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company’s TTFields devices include Optune Gio and Optune Lua. It also has ongoing clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.
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