Critical Contrast: Lexicon Pharmaceuticals (NASDAQ:LXRX) vs. NovAccess Global (OTCMKTS:XSNX)

Lexicon Pharmaceuticals (NASDAQ:LXRX) and NovAccess Global (OTCMKTS:XSNX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Lexicon Pharmaceuticals has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, NovAccess Global has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Profitability

This table compares Lexicon Pharmaceuticals and NovAccess Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lexicon Pharmaceuticals	-96.77%	-52.90%	-26.69%
NovAccess Global	N/A	N/A	N/A

Institutional & Insider Ownership

74.7% of Lexicon Pharmaceuticals shares are owned by institutional investors. 13.9% of Lexicon Pharmaceuticals shares are owned by company insiders. Comparatively, 1.4% of NovAccess Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lexicon Pharmaceuticals and NovAccess Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lexicon Pharmaceuticals	$31.08 million	16.84	-$200.40 million	($0.19)	-7.58
NovAccess Global	N/A	N/A	-$2.66 million	($0.09)	-0.01

NovAccess Global has lower revenue, but higher earnings than Lexicon Pharmaceuticals. Lexicon Pharmaceuticals is trading at a lower price-to-earnings ratio than NovAccess Global, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Lexicon Pharmaceuticals and NovAccess Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lexicon Pharmaceuticals	1	2	3	0	2.33
NovAccess Global	0	0	0	0	0.00

Lexicon Pharmaceuticals presently has a consensus price target of $3.23, indicating a potential upside of 123.96%. Given Lexicon Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Lexicon Pharmaceuticals is more favorable than NovAccess Global.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain and LX2761, which is in Phase I clinical development for gastrointestinal tract. Lexicon Pharmaceuticals, Inc. has strategic collaboration and license agreements with Bristol-Myers Squibb Company and Genentech, Inc. The company was incorporated in 1995 and is headquartered in The Woodlands, Texas.

About NovAccess Global

NovAccess Global Inc., a biopharmaceutical company, develops novel immunotherapies to treat brain tumor patients in the United States. It specializes in cutting-edge research related to utilizing a patient’s immune system to attack the cancer. The company was incorporated in 1997 and is headquartered in Chagrin Falls, Ohio.