Critical Comparison: Alliqua Biomedical (NASDAQ:ALQA) versus Novocure (NASDAQ:NVCR)

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Alliqua Biomedical (NASDAQ:ALQA) and Novocure (NASDAQ:NVCR) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Alliqua Biomedical and Novocure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliqua Biomedical 0 1 0 0 2.00
Novocure 0 3 5 0 2.63

Novocure has a consensus price target of $51.88, suggesting a potential downside of 24.69%. Given Novocure’s stronger consensus rating and higher probable upside, analysts plainly believe Novocure is more favorable than Alliqua Biomedical.

Profitability

This table compares Alliqua Biomedical and Novocure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliqua Biomedical -230.50% -71.73% -55.23%
Novocure -20.42% -47.23% -16.47%

Institutional and Insider Ownership

13.4% of Alliqua Biomedical shares are held by institutional investors. Comparatively, 65.3% of Novocure shares are held by institutional investors. 13.2% of Alliqua Biomedical shares are held by company insiders. Comparatively, 5.6% of Novocure shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Alliqua Biomedical has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Novocure has a beta of 2.44, meaning that its share price is 144% more volatile than the S&P 500.

Earnings & Valuation

This table compares Alliqua Biomedical and Novocure’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alliqua Biomedical $2.22 million 7.29 -$8.42 million N/A N/A
Novocure $248.07 million 26.59 -$63.56 million ($0.69) -99.83

Alliqua Biomedical has higher earnings, but lower revenue than Novocure.

Summary

Novocure beats Alliqua Biomedical on 10 of the 12 factors compared between the two stocks.

About Alliqua Biomedical

Alliqua BioMedical, Inc. develops, manufactures, and markets high water content, electron beam cross-linked, and aqueous polymer hydrogels or gels used in wound care, medical diagnostics, transdermal drug delivery, and cosmetics in the United States. It also provides contract manufacturing services to the OEM market. The company is headquartered in Langhorne, Pennsylvania.

About Novocure

Novocure Ltd. is global oncology company, which engages in the development and commercialization of its innovative therapy. It focuses on the commercial adoption of Optune, and its Tumor Treating Fields delivery system, for the treatment of glioblastoma (GBM), and to advance programs testing the efficacy and safety of Optune in multiple solid tumor indications through clinical pipeline. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.

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