Adynxx (OTCMKTS:ADYX) vs. NovoCure (NASDAQ:NVCR) Critical Analysis

NovoCure (NASDAQ:NVCR) and Adynxx (OTCMKTS:ADYX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

84.6% of NovoCure shares are held by institutional investors. 6.3% of NovoCure shares are held by insiders. Comparatively, 17.4% of Adynxx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares NovoCure and Adynxx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovoCure	$509.34 million	3.50	-$207.04 million	($1.40)	-11.77
Adynxx	N/A	N/A	N/A	N/A	N/A

Adynxx has lower revenue, but higher earnings than NovoCure.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NovoCure and Adynxx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovoCure	0	2	4	0	2.67
Adynxx	0	0	0	0	0.00

NovoCure presently has a consensus target price of $26.17, indicating a potential upside of 58.78%. Given NovoCure’s stronger consensus rating and higher possible upside, research analysts clearly believe NovoCure is more favorable than Adynxx.

Profitability

This table compares NovoCure and Adynxx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovoCure	-25.93%	-41.48%	-12.74%
Adynxx	N/A	N/A	N/A

Summary

NovoCure beats Adynxx on 5 of the 9 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 Adynxx

Adynxx, Inc., a clinical stage biopharmaceutical company, focuses on the development and marketing of transcription factor decoy technologies for the treatment of pain and inflammatory diseases. It is involved in the development of AYX platform of transcription factor decoys, including brivoligide, which is in Phase II clinical development for the reduction of postoperative pain; and AYX2, a pre-clinical candidate intended for the treatment of focal chronic pain. The company was founded in 2007 and is headquartered in San Francisco, California.