Critical Analysis: NovelStem International (NSTM) versus The Competition

NovelStem International (OTCMKTS:NSTM) is one of 26 publicly-traded companies in the “Retail stores, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare NovelStem International to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares NovelStem International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovelStem International	-9,166.67%	N/A	-73.18%
NovelStem International Competitors	-23.56%	-118.59%	-1.40%

Risk and Volatility

NovelStem International has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, NovelStem International’s competitors have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NovelStem International and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovelStem International	0	0	0	0	N/A
NovelStem International Competitors	88	811	1392	55	2.60

As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 14.74%. Given NovelStem International’s competitors higher possible upside, analysts plainly believe NovelStem International has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares NovelStem International and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NovelStem International	$10,000.00	-$4.19 million	-0.25
NovelStem International Competitors	$49.55 billion	$125.13 million	3.62

NovelStem International’s competitors have higher revenue and earnings than NovelStem International. NovelStem International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

29.3% of shares of all “Retail stores, not elsewhere classified” companies are owned by institutional investors. 13.6% of NovelStem International shares are owned by company insiders. Comparatively, 16.9% of shares of all “Retail stores, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

NovelStem International competitors beat NovelStem International on 9 of the 10 factors compared.

About NovelStem International

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.