Alimera Sciences (NASDAQ: ALIM) and Novus Therapeutics (NASDAQ:NVUS) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This table compares Alimera Sciences and Novus Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
41.8% of Alimera Sciences shares are held by institutional investors. Comparatively, 40.8% of Novus Therapeutics shares are held by institutional investors. 14.7% of Alimera Sciences shares are held by insiders. Comparatively, 5.2% of Novus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Alimera Sciences and Novus Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences presently has a consensus price target of $4.00, indicating a potential upside of 200.75%. Given Alimera Sciences’ higher probable upside, analysts clearly believe Alimera Sciences is more favorable than Novus Therapeutics.
Earnings & Valuation
This table compares Alimera Sciences and Novus Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alimera Sciences||$34.33 million||2.68||-$33.17 million||($0.31)||-4.29|
|Novus Therapeutics||N/A||N/A||-$37.95 million||($3.94)||-1.03|
Alimera Sciences has higher revenue and earnings than Novus Therapeutics. Alimera Sciences is trading at a lower price-to-earnings ratio than Novus Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Alimera Sciences has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Novus Therapeutics has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Alimera Sciences beats Novus Therapeutics on 10 of the 12 factors compared between the two stocks.
About Alimera Sciences
Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.
About Novus Therapeutics
Novus Therapeutics, Inc., formerly Tokai Pharmaceuticals, Inc., is a pharmaceutical company. The Company is focused on the acquisition, development, and commercialization of ear, nose, and throat products. It has two platforms: OP-01 Foam Platform and OP-02 Surfactant Program. OP-01 is developed with the intent to be used as a delivery vehicle for drugs treating ears, as well as the nasal and sinus cavities. OP-01 is currently being developed as an improved treatment option for acute otitis externa. OP-02 is a daily nasal spray that is designed to improve and maintain a healthy middle ear. OP-02 is being developed as a potential treatment option for patients with otitis media and Eustachian tube dysfunction. OP-02 is a combination drug product, which comprises two components: surfactant dipalmitoylphosphatidylcholine and a spreading agent cholesteryl palmitate. The product is sprayed through the nostrils toward the opening of the Eustachian tube at the back of the nasal cavity.
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