NovoCure Limited (NASDAQ: NVCR) and Athenex (NASDAQ:ATNX) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Insider & Institutional Ownership

36.8% of NovoCure Limited shares are owned by institutional investors. Comparatively, 0.9% of Athenex shares are owned by institutional investors. 16.7% of NovoCure Limited shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NovoCure Limited and Athenex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NovoCure Limited $125.17 million 12.87 -$69.14 million ($1.10) -16.45
Athenex $19.91 million 49.10 -$124.05 million N/A N/A

NovoCure Limited has higher revenue and earnings than Athenex.

Analyst Ratings

This is a summary of recent ratings and target prices for NovoCure Limited and Athenex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovoCure Limited 0 1 6 0 2.86
Athenex 0 1 4 0 2.80

NovoCure Limited presently has a consensus price target of $20.14, indicating a potential upside of 11.29%. Athenex has a consensus price target of $27.64, indicating a potential upside of 61.35%. Given Athenex’s higher probable upside, analysts plainly believe Athenex is more favorable than NovoCure Limited.

Profitability

This table compares NovoCure Limited and Athenex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovoCure Limited -75.91% -69.48% -34.71%
Athenex N/A N/A N/A

Summary

NovoCure Limited beats Athenex on 6 of the 11 factors compared between the two stocks.

NovoCure Limited Company Profile

NovoCure Limited is a commercial-stage oncology company. The Company is engaged in developing a cancer treatment centered on a therapy called TTFields, the use of electric fields tuned to specific frequencies to disrupt solid tumor cancer cell division. Its TTFields delivery system is used for the treatment of glioblastoma (GBM) and to advance programs testing of TTFields in multiple solid tumor indications through its clinical pipeline. In addition to its clinical and commercial progress in GBM, it is planning or conducting clinical trials evaluating the use of TTFields in brain metastases, non-small-cell lung cancer (NSCLC), pancreatic cancer, ovarian cancer and mesothelioma. TTFields are delivered through a portable, medical device. The complete delivery system, which is designed to allow patients to go about their daily activities while receiving continuous cancer treatment, includes a portable electric field generator, transducer arrays, rechargeable batteries and accessories.

Athenex Company Profile

Athenex, Inc. is an oncology pharmaceutical company focused on the development and commercialization of therapies for cancer diseases and supportive therapies. The Company’s technology platform is organized into three categories, including Oral Absorption Platform, Src Kinase Inhibitors and Symptom Therapeutics. The Company offers Oraxol, an oral formulation of paclitaxel; Orateacan, an oral formulation of Irinotecan; Oradoxel, an oral formulation of Docetaxel, and an oral formulation of Topotecan for the treatment of various types of cancers. Its Src Kinase Inhibitors include KX-01 (KX2-391) and KX-02 (KX2-361) oncology drug candidates. The Company’s Symptom Therapeutics include CQ-01, which is used for the treatment of burn pruritus and scars; CQ-R1, which is used for the treatment of an irradiation-induced dermatitis, and an intranasal Granisetron used for the treatment of chemotherapy-induced nausea/vomiting.

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