Alimera Sciences (NASDAQ: ALIM) and Novus Therapeutics (NASDAQ:NVUS) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Profitability

This table compares Alimera Sciences and Novus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alimera Sciences -55.29% N/A -28.43%
Novus Therapeutics N/A -156.99% -140.33%

Earnings and Valuation

This table compares Alimera Sciences and Novus Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alimera Sciences $34.33 million 2.60 -$33.17 million ($0.31) -4.16
Novus Therapeutics N/A N/A -$37.95 million N/A N/A

Alimera Sciences has higher revenue and earnings than Novus Therapeutics.

Risk & Volatility

Alimera Sciences has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500. Comparatively, Novus Therapeutics has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

41.9% of Alimera Sciences shares are held by institutional investors. Comparatively, 40.8% of Novus Therapeutics shares are held by institutional investors. 14.7% of Alimera Sciences shares are held by insiders. Comparatively, 5.2% of Novus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Alimera Sciences and Novus Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alimera Sciences 0 0 3 0 3.00
Novus Therapeutics 0 0 0 0 N/A

Alimera Sciences presently has a consensus price target of $4.00, suggesting a potential upside of 210.08%. Given Alimera Sciences’ higher possible upside, equities analysts plainly believe Alimera Sciences is more favorable than Novus Therapeutics.

Summary

Alimera Sciences beats Novus Therapeutics on 9 of the 10 factors compared between the two stocks.

Alimera Sciences Company Profile

Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.

Novus Therapeutics Company Profile

Novus Therapeutics, Inc., formerly Tokai Pharmaceuticals, Inc., is a pharmaceutical company. The Company is focused on the acquisition, development, and commercialization of ear, nose, and throat products. It has two platforms: OP-01 Foam Platform and OP-02 Surfactant Program. OP-01 is developed with the intent to be used as a delivery vehicle for drugs treating ears, as well as the nasal and sinus cavities. OP-01 is currently being developed as an improved treatment option for acute otitis externa. OP-02 is a daily nasal spray that is designed to improve and maintain a healthy middle ear. OP-02 is being developed as a potential treatment option for patients with otitis media and Eustachian tube dysfunction. OP-02 is a combination drug product, which comprises two components: surfactant dipalmitoylphosphatidylcholine and a spreading agent cholesteryl palmitate. The product is sprayed through the nostrils toward the opening of the Eustachian tube at the back of the nasal cavity.

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