Novonesis A/S (OTC:NVZMY) versus Mesoblast (NASDAQ:MESO) Head-To-Head Review

Novonesis A/S (OTC:NVZMY) and Mesoblast (NASDAQ:MESO) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Novonesis A/S and Mesoblast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novonesis A/S	N/A	N/A	N/A
Mesoblast	N/A	N/A	N/A

Risk & Volatility

Novonesis A/S has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Mesoblast has a beta of 3.48, suggesting that its stock price is 248% more volatile than the S&P 500.

Valuation and Earnings

This table compares Novonesis A/S and Mesoblast”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novonesis A/S	$2.60 billion	11.70	$439.08 million	$1.58	41.08
Mesoblast	$5.67 million	255.45	-$87.96 million	N/A	N/A

Novonesis A/S has higher revenue and earnings than Mesoblast.

Institutional & Insider Ownership

0.0% of Novonesis A/S shares are held by institutional investors. Comparatively, 1.4% of Mesoblast shares are held by institutional investors. 18.8% of Mesoblast shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Novonesis A/S and Mesoblast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novonesis A/S	1	0	0	0	1.00
Mesoblast	0	1	2	1	3.00

Mesoblast has a consensus target price of $18.00, suggesting a potential upside of 57.89%. Given Mesoblast’s stronger consensus rating and higher possible upside, analysts plainly believe Mesoblast is more favorable than Novonesis A/S.

Summary

Mesoblast beats Novonesis A/S on 8 of the 10 factors compared between the two stocks.

About Novonesis A/S

Novonesis A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novonesis A/S was founded in 1925 and is based in Bagsvaerd, Denmark.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.