Head-To-Head Review: NovoCure (NASDAQ:NVCR) versus Meihua International Medical Technologies (NASDAQ:MHUA)

NovoCure (NASDAQ:NVCR) and Meihua International Medical Technologies (NASDAQ:MHUA) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares NovoCure and Meihua International Medical Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovoCure	-25.93%	-41.48%	-12.74%
Meihua International Medical Technologies	N/A	N/A	N/A

Institutional & Insider Ownership

84.6% of NovoCure shares are owned by institutional investors. Comparatively, 1.2% of Meihua International Medical Technologies shares are owned by institutional investors. 6.3% of NovoCure shares are owned by company insiders. Comparatively, 66.6% of Meihua International Medical Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

NovoCure has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Meihua International Medical Technologies has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for NovoCure and Meihua International Medical Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovoCure	0	2	4	0	2.67
Meihua International Medical Technologies	0	0	0	0	0.00

NovoCure currently has a consensus price target of $32.83, suggesting a potential upside of 88.91%. Given NovoCure’s stronger consensus rating and higher probable upside, research analysts plainly believe NovoCure is more favorable than Meihua International Medical Technologies.

Valuation & Earnings

This table compares NovoCure and Meihua International Medical Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovoCure	$621.71 million	3.12	-$207.04 million	($1.51)	-11.51
Meihua International Medical Technologies	$96.91 million	0.08	$11.62 million	N/A	N/A

Meihua International Medical Technologies has lower revenue, but higher earnings than NovoCure.

Summary

NovoCure beats Meihua International Medical Technologies on 7 of the 12 factors compared between the two stocks.

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.

About Meihua International Medical Technologies

Meihua International Medical Technologies Co., Ltd. engages in the manufacture, sells, and marketing of medical consumables in the People's Republic of China. The company offers class I, II, and III disposable medical devices. Its products include non-bottled products, such as brushes and ID bracelets; and polyethylene bottled products, such as eye drop and tablet bottles, as well as electronic pumps. The company also distributes disposable medical devices sourced from other manufacturers to customers in China. In addition, it offers COVID-19 products comprising disposable medical masks. The company serves hospitals, pharmacies, medical institutions, and medical equipment companies. It also exports its products to Europe, North America, South America, Asia, Africa, and Oceania. The company was founded in 1991 and is based in Yangzhou, the People's Republic of China. Meihua International Medical Technologies Co., Ltd. operates as a subsidiary of Bright Accomplish Limited.