Financial Contrast: Novocure (NVCR) & Cryolife (CRY)

Novocure (NASDAQ:NVCR) and Cryolife (NYSE:CRY) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Novocure has a beta of 3.73, meaning that its share price is 273% more volatile than the S&P 500. Comparatively, Cryolife has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

58.6% of Novocure shares are owned by institutional investors. Comparatively, 71.1% of Cryolife shares are owned by institutional investors. 15.3% of Novocure shares are owned by company insiders. Comparatively, 4.0% of Cryolife shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Novocure and Cryolife’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novocure -25.37% -52.72% -19.72%
Cryolife -2.05% 4.25% 2.03%

Valuation and Earnings

This table compares Novocure and Cryolife’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novocure $177.03 million 17.71 -$61.66 million ($0.70) -48.16
Cryolife $189.70 million 5.69 $3.70 million $0.40 73.05

Cryolife has higher revenue and earnings than Novocure. Novocure is trading at a lower price-to-earnings ratio than Cryolife, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Novocure and Cryolife, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novocure 0 2 4 0 2.67
Cryolife 0 0 2 0 3.00

Novocure presently has a consensus price target of $46.50, suggesting a potential upside of 37.94%. Cryolife has a consensus price target of $34.00, suggesting a potential upside of 16.36%. Given Novocure’s higher probable upside, equities research analysts plainly believe Novocure is more favorable than Cryolife.

Summary

Cryolife beats Novocure on 9 of the 14 factors compared between the two stocks.

Novocure Company Profile

Novocure Ltd. operates as an oncology company. It enages in developing its propriety technoclogy, Tumor Treating Fields, which uses electric fields tuned to specific frequencies to disrupt cancer cell division, inhibiting tumor growth, and causing affected cancer cells to die. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.

Cryolife Company Profile

CryoLife, Inc., together with its subsidiaries, manufactures, processes, and distributes medical devices and implantable human tissues for use in cardiac and vascular surgeries worldwide. The company operates in two segments, Medical Devices and Preservation Services. It offers BioGlue, an agent for cross-linking proteins for cardiac, vascular, pulmonary, and general surgical applications; On-X mechanical heart valves for aortic and mitral indications; cardiac preservation services; PhotoFix, a bovine pericardial patch for use in cardiac and vascular repairing activities; and PerClot, an absorbable powdered hemostat for use in surgical procedures, including cardiac, vascular, orthopedic, neurological, gynecological, ENT, and trauma surgeries. The company also provides cardiac laser therapy products, which include laser consoles, related service and maintenance, and single-use, as well as fiber-optic hand-pieces for the treatment of coronary artery disease in patients with severe angina. In addition, it distributes E-vita OPEN PLUS, a hybrid stent graft systems for the surgical and endovascular treatment; E-xtra DESIGN ENGINEERING products for the treatment of aortic vascular diseases; E-ventus BX, a balloon-expandable peripheral stent graft for the endovascular treatment of renal and pelvic arteries; E-liac, a stent graft used to treat aneurysmal iliac arteries, as well as aneurysmal iliac side branches; E-vita THORACIC 3G is a stent graft system for the endovascular treatment of thoracic aortic aneurysms; and E-tegra, an abdominal aortic aneurysms stent graft system for the endovascular treatment. Further, the company offers vascular preservation services; and synthetic vascular grafts for use in open aortic and peripheral vascular surgical procedures. The company serves physicians, hospitals, and other healthcare industries, as well as cardiac, vascular, thoracic, and general surgeons. CryoLife, Inc. was founded in 1984 and is headquartered in Kennesaw, Georgia.

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