Critical Review: Adynxx (OTCMKTS:ADYX) versus NovoCure (NASDAQ:NVCR)

Adynxx (OTCMKTS:ADYX) and NovoCure (NASDAQ:NVCR) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Institutional & Insider Ownership

84.6% of NovoCure shares are owned by institutional investors. 17.4% of Adynxx shares are owned by insiders. Comparatively, 6.3% of NovoCure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adynxx	N/A	N/A	N/A
NovoCure	-25.93%	-41.48%	-12.74%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Adynxx and NovoCure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adynxx	0	0	0	0	0.00
NovoCure	0	2	4	0	2.67

NovoCure has a consensus target price of $26.17, indicating a potential upside of 58.78%. Given NovoCure’s stronger consensus rating and higher possible upside, analysts plainly believe NovoCure is more favorable than Adynxx.

Valuation and Earnings

This table compares Adynxx and NovoCure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adynxx	N/A	N/A	N/A	N/A	N/A
NovoCure	$509.34 million	3.50	-$207.04 million	($1.40)	-11.77

Adynxx has higher earnings, but lower revenue than NovoCure.

Summary

NovoCure beats Adynxx on 5 of the 9 factors compared between the two stocks.

About Adynxx

Adynxx, Inc., a clinical stage biopharmaceutical company, focuses on the development and marketing of transcription factor decoy technologies for the treatment of pain and inflammatory diseases. It is involved in the development of AYX platform of transcription factor decoys, including brivoligide, which is in Phase II clinical development for the reduction of postoperative pain; and AYX2, a pre-clinical candidate intended for the treatment of focal chronic pain. The company was founded in 2007 and is headquartered in San Francisco, California.

About NovoCure

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company’s TTFields devices include Optune Gio and Optune Lua. It also has ongoing clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.