Critical Comparison: NovelStem International (NSTM) and Its Peers

NovelStem International (OTCMKTS:NSTM) is one of 26 public companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare NovelStem International to similar businesses based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Insider and Institutional Ownership

29.3% of shares of all “Retail stores, not elsewhere classified” companies are owned by institutional investors. 13.6% of NovelStem International shares are owned by company insiders. Comparatively, 16.9% of shares of all “Retail stores, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

NovelStem International has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, NovelStem International’s rivals have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares NovelStem International and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NovelStem International	$10,000.00	-$4.19 million	-0.25
NovelStem International Competitors	$8.76 billion	$125.13 million	5.70

NovelStem International’s rivals have higher revenue and earnings than NovelStem International. NovelStem International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for NovelStem International and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovelStem International	0	0	0	0	N/A
NovelStem International Competitors	88	811	1393	55	2.60

As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 14.32%. Given NovelStem International’s rivals higher probable upside, analysts clearly believe NovelStem International has less favorable growth aspects than its rivals.

Profitability

This table compares NovelStem International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovelStem International	-9,166.67%	N/A	-73.18%
NovelStem International Competitors	-25.06%	-60.82%	-0.94%

Summary

NovelStem International rivals beat NovelStem International on 9 of the 10 factors compared.

NovelStem International Company Profile

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.