Novus Therapeutics (NASDAQ:NVUS) and Vertex Pharmaceuticals (NASDAQ:VRTX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Insider & Institutional Ownership
28.9% of Novus Therapeutics shares are held by institutional investors. Comparatively, 94.0% of Vertex Pharmaceuticals shares are held by institutional investors. 5.7% of Novus Therapeutics shares are held by insiders. Comparatively, 0.7% of Vertex Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Novus Therapeutics has a beta of 2.87, indicating that its share price is 187% more volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
This is a breakdown of current recommendations for Novus Therapeutics and Vertex Pharmaceuticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Novus Therapeutics presently has a consensus target price of $10.00, indicating a potential upside of 1,198.70%. Vertex Pharmaceuticals has a consensus target price of $207.79, indicating a potential upside of 13.10%. Given Novus Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Novus Therapeutics is more favorable than Vertex Pharmaceuticals.
This table compares Novus Therapeutics and Vertex Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Novus Therapeutics and Vertex Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Novus Therapeutics||N/A||N/A||-$14.06 million||($1.56)||-0.49|
|Vertex Pharmaceuticals||$3.05 billion||15.49||$2.10 billion||$2.83||64.92|
Vertex Pharmaceuticals has higher revenue and earnings than Novus Therapeutics. Novus Therapeutics is trading at a lower price-to-earnings ratio than Vertex Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Vertex Pharmaceuticals beats Novus Therapeutics on 9 of the 13 factors compared between the two stocks.
Novus Therapeutics Company Profile
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.
Vertex Pharmaceuticals Company Profile
Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis. The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who have specific mutations in their cystic fibrosis transmembrane conductance regulator gene. It is also developing VX-659 and VX-445 that are Phase III clinical trials; VX-121, a cystic fibrosis transmembrane conductance regulator corrector that is in Phase I/II clinical trial; VX-150, an inhibitor that is in Phase IIb clinical trial for acute pain; CTX001 that is in Phase I/II clinical trial for the treatment of beta-thalassemia and sickle cell diseases; and a novel drug candidate, which is in Phase I clinical trial for the treatment for alpha-1 antitrypsin deficiency. The company sells its products primarily to specialty pharmacy and specialty distributors in the United States, as well as specialty distributors and retail chains, and hospitals and clinics internationally. Vertex Pharmaceuticals Incorporated has collaborations with CRISPR Therapeutics AG; Arbor Biotechnologies, Inc.; Moderna Therapeutics, Inc.; Genomics plc; Merck KGaA; Darmstadt, Germany; X-Chem, Inc.; Janssen Pharmaceuticals, Inc.; Merck KGaA; and Kymera Therapeutics. The company was founded in 1989 and is headquartered in Boston, Massachusetts.
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