Critical Analysis: NovelStem International (NSTM) & Its Rivals

Institutional & Insider Ownership

29.3% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 13.6% of NovelStem International shares are held by company insiders. Comparatively, 17.0% of shares of all “Retail stores, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares NovelStem International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovelStem International	-9,166.67%	N/A	-73.18%
NovelStem International Competitors	-25.06%	-60.81%	-0.94%

Risk and Volatility

NovelStem International has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, NovelStem International’s competitors have a beta of 0.74, meaning that their average share price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares NovelStem International and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NovelStem International	$10,000.00	-$4.19 million	-0.65
NovelStem International Competitors	$8.78 billion	$125.40 million	6.19

NovelStem International’s competitors have higher revenue and earnings than NovelStem International. NovelStem International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

NovelStem International competitors beat NovelStem International on 8 of the 9 factors compared.

NovelStem International Company Profile

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.