Analyzing Syndax Pharmaceuticals (NASDAQ:SNDX) & Novelion Therapeutics (NASDAQ:NVLN)

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

Insider & Institutional Ownership

62.8% of Syndax Pharmaceuticals shares are held by institutional investors. Comparatively, 37.1% of Novelion Therapeutics shares are held by institutional investors. 8.3% of Syndax Pharmaceuticals shares are held by company insiders. Comparatively, 18.0% of Novelion Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Syndax Pharmaceuticals and Novelion Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syndax Pharmaceuticals -4,310.68% -108.44% -71.24%
Novelion Therapeutics -79.43% N/A -26.13%

Volatility & Risk

Syndax Pharmaceuticals has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Novelion Therapeutics has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Syndax Pharmaceuticals and Novelion Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syndax Pharmaceuticals 0 1 7 0 2.88
Novelion Therapeutics 0 1 0 0 2.00

Syndax Pharmaceuticals currently has a consensus target price of $15.67, indicating a potential upside of 53.14%. Given Syndax Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Syndax Pharmaceuticals is more favorable than Novelion Therapeutics.

Earnings & Valuation

This table compares Syndax Pharmaceuticals and Novelion Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Syndax Pharmaceuticals $1.52 million 182.66 -$73.96 million ($2.92) -3.50
Novelion Therapeutics $130.43 million 0.10 -$108.33 million ($5.76) -0.12

Syndax Pharmaceuticals has higher earnings, but lower revenue than Novelion Therapeutics. Syndax Pharmaceuticals is trading at a lower price-to-earnings ratio than Novelion Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Syndax Pharmaceuticals beats Novelion Therapeutics on 8 of the 14 factors compared between the two stocks.

Syndax Pharmaceuticals Company Profile

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. The company's lead product candidates include entinostat, which is in Phase III clinical trials for the treatment of advanced hormone receptor positive (HR+) and human epidermal growth factor receptor 2 negative (HER2-) breast cancer; and SNDX-5613 inhibitor that targets the binding interaction of Menin with mixed lineage leukemia-rearranged and acute myeloid leukemia with a mutated nucleophosmin 1. It also develops entinostat with Keytruda (pembrolizumab) in a Phase Ib/II clinical trials for the treatment of non-small cell lung cancer and melanoma or microsatellite stable colorectal carcinoma; with Tecentriq (atezolizumab) in a Phase Ib/II clinical trials to treat patients with triple-negative breast cancer, and HR+ and HER2- metastatic breast cancer; and with Bavencio (avelumab) in a Phase Ib/II clinical trials for the treatment of ovarian cancer. In addition, the company develops SNDX-6352, a monoclonal antibody that blocks the colony stimulating factor 1 that is in Phase I dose escalation trial in patients with chronic graft versus host disease; and as a monotherapy and in combination with Imfinzi (durvalumab), which is in Phase I/Ib dose trials for the treatment of solid tumors. Syndax Pharmaceuticals, Inc. has clinical collaborations with MSD International GmbH; Genentech, Inc.; Merck KGaA and Pfizer; and AstraZeneca plc. It also has collaborative research and development agreement with National Cancer Institute; clinical trial agreement with Eastern Cooperative Oncology Group; and license agreement with Kyowa Hakko Kirin Co., Ltd. The company was founded in 2005 and is headquartered in Waltham, Massachusetts.

Novelion Therapeutics Company Profile

Novelion Therapeutics Inc., a biopharmaceutical company, develops a portfolio of therapies for individuals living with rare diseases in the United States, Brazil, and internationally. The company's commercial products include lomitapide hard capsule for the treatment of homozygous familial hypercholesterolemia in adults under the JUXTAPID and LOJUXTA brands; and metreleptin, a recombinant analogue of human leptin, which is indicated as an adjunct to diet as replacement therapy to treat the complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy under the MYALEPT brand. Its orphan drug-designated product candidate is zuretinol acetate, an oral synthetic retinoid, which is in development for the treatment of inherited retinal disease caused by underlying mutations in retinal pigment epithelium protein 65 and lecithin: retinol acyltransferase genes. The company was formerly known as QLT Inc. and changed its name to Novelion Therapeutics Inc. in November 2016. Novelion Therapeutics Inc. was founded in 1981 and is headquartered in Vancouver, Canada.

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