NuVasive (NASDAQ: NUVA) and Novocure (NASDAQ:NVCR) are both mid-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
This table compares NuVasive and Novocure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for NuVasive and Novocure, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NuVasive presently has a consensus target price of $65.50, suggesting a potential upside of 25.67%. Novocure has a consensus target price of $28.00, suggesting a potential downside of 10.54%. Given NuVasive’s higher probable upside, analysts clearly believe NuVasive is more favorable than Novocure.
Volatility and Risk
NuVasive has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Novocure has a beta of 3.13, indicating that its stock price is 213% more volatile than the S&P 500.
Institutional & Insider Ownership
47.7% of Novocure shares are held by institutional investors. 1.2% of NuVasive shares are held by company insiders. Comparatively, 15.3% 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 is poised for long-term growth.
Earnings and Valuation
This table compares NuVasive and Novocure’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NuVasive||$1.03 billion||2.60||$83.00 million||$1.91||27.29|
|Novocure||$177.03 million||16.04||-$61.66 million||($0.70)||-44.71|
NuVasive has higher revenue and earnings than Novocure. Novocure is trading at a lower price-to-earnings ratio than NuVasive, indicating that it is currently the more affordable of the two stocks.
NuVasive beats Novocure on 9 of the 14 factors compared between the two stocks.
NuVasive, Inc., a medical device company, develops and markets minimally-disruptive surgical products and procedurally-integrated solutions for spine surgery. Its products focus on applications for spine fusion surgery, including ancillary products and services used to aid in the surgical procedure. The company's principal product is Maximum Access Surgery, a minimally-disruptive surgical platform, which includes its software-driven nerve detection and avoidance systems, and intraoperative monitoring (IOM) services and support; MaXcess, an integrated split-blade retractor system; and various specialized implants and biologics. Its spine surgery product line offerings comprise products for the thoracolumbar and the cervical spine, which are primarily used to enable surgeons to access the spine and to perform restorative and fusion procedures in a minimally-disruptive fashion. Its biologics products include Osteocel Plus and Pro, a cellular bone matrix; Formagraft, a collagen-based synthetic bone substitute; AttraX, a synthetic bone graft material; and Propel DBM, a moldable demineralized bone matrix putty, which are used for spinal fusion or bone healing process. The company's IOM services are used for onsite and remote monitoring of the neurological systems of patients undergoing spinal and brain-related surgeries. It also provides implants used for interbody disc height restoration; and fixation products, including pedicle screws, rods, and plates. In addition, the company offers Integrated Global Alignment platform for assessing, preserving, and restoring spinal alignment; MAGEC-early onset scoliosis, a spinal bracing and distraction system; and PRECICE, a limb lengthening system. NuVasive, Inc. sells its products to patients, surgeons, hospitals, and insurers through independent sales agents, directly-employed sales personnel, and distributors in the United States and internationally. The company was founded in 1997 and is headquartered in San Diego, California.
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.
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