Financial Analysis: Intec Pharma (NTEC) and Novus Therapeutics (NVUS)

Intec Pharma (NASDAQ:NTEC) and Novus Therapeutics (NASDAQ:NVUS) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Intec Pharma and Novus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intec Pharma N/A -63.39% -57.89%
Novus Therapeutics N/A -51.60% -47.75%

Institutional & Insider Ownership

45.1% of Intec Pharma shares are held by institutional investors. Comparatively, 41.2% of Novus Therapeutics shares are held by institutional investors. 4.3% of Novus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Intec Pharma and Novus Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intec Pharma N/A N/A -$29.09 million ($1.65) -2.92
Novus Therapeutics N/A N/A -$13.11 million ($2.30) -1.93

Intec Pharma is trading at a lower price-to-earnings ratio than Novus Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Intec Pharma has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Novus Therapeutics has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Intec Pharma and Novus Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intec Pharma 0 0 5 0 3.00
Novus Therapeutics 0 0 2 0 3.00

Intec Pharma currently has a consensus price target of $12.88, indicating a potential upside of 167.12%. Novus Therapeutics has a consensus price target of $9.50, indicating a potential upside of 114.45%. Given Intec Pharma’s higher possible upside, equities analysts clearly believe Intec Pharma is more favorable than Novus Therapeutics.

About Intec Pharma

Intec Pharma Ltd., a clinical stage biopharmaceutical company, focuses on developing drugs based on its proprietary Accordion Pill platform technology in Israel. Its Accordion Pill is an oral drug delivery system that is designed to enhance the efficacy and safety of existing drugs and drugs in development by utilizing a gastric retention and specific release mechanism. The company's lead product candidate is Accordion Pill Carbidopa/Levodopa (AP-CDLD), which is in a Phase III clinical trial for the treatment of Parkinson's disease symptoms in advanced Parkinson's disease patients. It is also developing Accordion Pill Zaleplon (AP-ZP) that is in a Phase III clinical trial for the treatment of insomnia, including sleep induction and for enhancing of sleep maintenance; Accordion Pill, which has completed a Phase I clinical trial for the prevention and treatment of gastroduodenal and small bowel Nonsteroidal Anti-Inflammatory Drug induced ulcers; and Accordion Pill platform with Cannabidiol and 9-Tetrahydrocannabinol, (AP-CBD/THC), which is in a Phase I clinical trial for the treatment of various indications, including low back neuropathic pain and fibromyalgia. The company was formerly known as Intec Pharmaceuticals (2000) Ltd. and changed its name to Intec Pharma Ltd. in March 2004. Intec Pharma Ltd. was founded in 2000 and is based in Jerusalem, Israel.

About Novus Therapeutics

Novus Therapeutics, Inc., a pharmaceutical company, focuses on developing products for patients with disorders of ear, nose, and throat. Its lead product is (OP-02), a surfactant-based combination drug product for patients at risk for, or with, otitis media (OM) (middle ear inflammation with or without infection). The company also has a foam-based drug delivery technology (OP-01) that could be used to deliver drugs into the ear, nose, and sinus cavities. Novus Therapeutics, Inc. is headquartered in Irvine, California.

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