Alpha Tau Medical (NASDAQ:DRTS – Get Free Report) and NovoCure (NASDAQ:NVCR – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Profitability
This table compares Alpha Tau Medical and NovoCure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alpha Tau Medical | N/A | -33.75% | -26.78% |
| NovoCure | -30.67% | -45.68% | -14.59% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Alpha Tau Medical and NovoCure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alpha Tau Medical | 0 | 0 | 3 | 0 | 3.00 |
| NovoCure | 0 | 2 | 4 | 0 | 2.67 |
Insider and Institutional Ownership
2.7% of Alpha Tau Medical shares are held by institutional investors. Comparatively, 84.6% of NovoCure shares are held by institutional investors. 39.5% of Alpha Tau Medical shares are held by insiders. Comparatively, 6.3% of NovoCure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Alpha Tau Medical and NovoCure”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alpha Tau Medical | N/A | N/A | -$29.16 million | ($0.41) | -5.54 |
| NovoCure | $549.96 million | 3.18 | -$207.04 million | ($1.81) | -8.99 |
Alpha Tau Medical has higher earnings, but lower revenue than NovoCure. NovoCure is trading at a lower price-to-earnings ratio than Alpha Tau Medical, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Alpha Tau Medical has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, NovoCure has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Summary
Alpha Tau Medical beats NovoCure on 9 of the 13 factors compared between the two stocks.
About Alpha Tau Medical
Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.
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.
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