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

Insider and Institutional Ownership

40.8% of Novus Therapeutics shares are held by institutional investors. Comparatively, 64.2% of Synlogic shares are held by institutional investors. 5.2% of Novus Therapeutics shares are held by company insiders. Comparatively, 18.6% of Synlogic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Novus Therapeutics and Synlogic’s top-line 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 N/A N/A
Synlogic N/A N/A -$26.26 million ($4.68) -2.04

Analyst Ratings

This is a summary of current ratings and price targets for Novus Therapeutics and Synlogic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novus Therapeutics 0 0 0 0 N/A
Synlogic 0 1 3 0 2.75

Synlogic has a consensus price target of $18.75, indicating a potential upside of 96.54%. Given Synlogic’s higher probable upside, analysts plainly believe Synlogic is more favorable than Novus Therapeutics.

Profitability

This table compares Novus Therapeutics and Synlogic’s 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%
Synlogic N/A -50.19% -46.76%

Summary

Synlogic beats Novus Therapeutics on 7 of the 7 factors compared between 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.

Synlogic Company Profile

Synlogic, Inc., formerly Mirna Therapeutics, Inc., is engaged in the development of a novel class of living treatments, Synthetic Biotic medicines. The Company uses its proprietary Synthetic Biotic development platform. Its pipeline includes Synthetic Biotic medicines for the treatment of rare genetic diseases, such as Urea Cycle Disorder (UCD) and Phenylketonuria (PKU). It is also focused on Synthetic Biotic medicines to address other conditions, including inflammatory bowel disease , cancer and metabolic conditions, such as diabetes and obesity. The Company’s synthetic biotic medicines leverages the tools and principles of synthetic biology to genetically reengineer probiotic microbes to perform or deliver critical functions missing or damaged due to disease. The Company’s pipeline includes synthetic biotic medicines for the treatment of inborn errors of metabolism (IEM). It is developing SYNB1020 for the treatment of UCD and HE. It is developing SYNB1618 for the treatment of PKU.

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