Analyzing Novus Therapeutics (NVUS) & Catalyst Biosciences (CBIO)

Novus Therapeutics (NASDAQ: NVUS) and Catalyst Biosciences (NASDAQ:CBIO) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Institutional and Insider Ownership

40.8% of Novus Therapeutics shares are held by institutional investors. Comparatively, 22.9% of Catalyst Biosciences shares are held by institutional investors. 5.2% of Novus Therapeutics shares are held by insiders. Comparatively, 5.0% of Catalyst Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Novus Therapeutics and Catalyst Biosciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novus Therapeutics 0 0 1 0 3.00
Catalyst Biosciences 0 0 3 0 3.00

Novus Therapeutics currently has a consensus price target of $7.00, suggesting a potential upside of 120.82%. Catalyst Biosciences has a consensus price target of $45.00, suggesting a potential upside of 30.97%. Given Novus Therapeutics’ higher probable upside, research analysts clearly believe Novus Therapeutics is more favorable than Catalyst Biosciences.

Profitability

This table compares Novus Therapeutics and Catalyst Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novus Therapeutics N/A -156.99% -140.33%
Catalyst Biosciences -2,438.50% -91.67% -55.28%

Risk and Volatility

Novus Therapeutics has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Catalyst Biosciences has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.

Valuation and Earnings

This table compares Novus Therapeutics and Catalyst Biosciences’ 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 -$37.95 million ($3.94) -0.80
Catalyst Biosciences $400,000.00 499.08 -$16.94 million ($13.12) -2.62

Catalyst Biosciences has higher revenue and earnings than Novus Therapeutics. Catalyst Biosciences is trading at a lower price-to-earnings ratio than Novus Therapeutics, indicating that it is currently the more affordable of the two stocks.

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.

Catalyst Biosciences Company Profile

Catalyst Biosciences, Inc., formerly Targacept, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on creating and developing medicines to address serious medical conditions. The Company focuses its product development efforts in the fields of hemostasis, including the treatment of hemophilia and surgical bleeding, and inflammation, including prevention of delayed graft function (DGF) in renal transplants and the treatment of dry age-related macular degeneration (dry AMD), a condition that can cause visual impairment or blindness. The Company’s advanced program is a coagulation Factor VIIa variant, CB 813d, that has completed a Phase I clinical trial in severe hemophilia A and B patients. In addition to its lead Factor VIIa program, it has approximately two other coagulation factors, a Factor IX variant, CB 2679d/ISU 304, that is in advanced preclinical development, and a Factor Xa variant that has reached the advanced lead preclinical-stage of development.

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