Financial Survey: Concert Pharmaceuticals (NASDAQ:CNCE) versus Nuvo Pharmaceuticals (OTCMKTS:MRVFF)

Concert Pharmaceuticals (NASDAQ:CNCEGet Rating) and Nuvo Pharmaceuticals (OTCMKTS:MRVFFGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Concert Pharmaceuticals and Nuvo Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Concert Pharmaceuticals -245.72% -89.48% -64.29%
Nuvo Pharmaceuticals -16.97% -29.09% -0.65%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Concert Pharmaceuticals and Nuvo Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concert Pharmaceuticals 0 0 3 0 3.00
Nuvo Pharmaceuticals 0 0 0 0 N/A

Concert Pharmaceuticals presently has a consensus target price of $12.00, suggesting a potential upside of 121.81%. Given Concert Pharmaceuticals’ higher possible upside, research analysts plainly believe Concert Pharmaceuticals is more favorable than Nuvo Pharmaceuticals.

Valuation and Earnings

This table compares Concert Pharmaceuticals and Nuvo Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Concert Pharmaceuticals $32.58 million 6.03 -$80.05 million ($2.66) -2.03
Nuvo Pharmaceuticals $54.98 million 0.13 -$25.69 million ($1.56) -0.41

Nuvo Pharmaceuticals has higher revenue and earnings than Concert Pharmaceuticals. Concert Pharmaceuticals is trading at a lower price-to-earnings ratio than Nuvo Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

51.3% of Concert Pharmaceuticals shares are owned by institutional investors. 10.8% of Concert Pharmaceuticals shares are owned by company 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.

Volatility and Risk

Concert Pharmaceuticals has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Nuvo Pharmaceuticals has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Summary

Nuvo Pharmaceuticals beats Concert Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

Concert Pharmaceuticals Company Profile (Get Rating)

Concert Pharmaceuticals, Inc. operates as a clinical stage biopharmaceutical company that develops novel small molecule drugs for the treatment of autoimmune diseases. The company's lead product candidate is CTP-543, which is in Phase III clinical trial for the treatment of alopecia areata, a serious autoimmune dermatological condition. It has strategic collaborations with Avanir Pharmaceuticals, Inc.; Jazz Pharmaceuticals, Inc.; Cipla Technologies; and Processa Pharmaceuticals. The company was incorporated in 2006 and is headquartered in Lexington, Massachusetts.

Nuvo Pharmaceuticals Company Profile (Get Rating)

Nuvo Pharmaceuticals Inc., doing business as Miravo Healthcare, provides prescription and non-prescription products for pain, allergy, neurology, and dermatology worldwide. The company operates in three segments: Commercial Business, Production and Service Business, and Licensing and Royalty Business. It offers Blexten, an antihistamine drug for the symptomatic relief of allergic rhinitis and chronic spontaneous urticaria; Cambia, a nonsteroidal anti-inflammatory drug for migraine; Suvexx/Treximet, a migraine medicine; NeoVisc, an injectable viscosupplement for osteoarthritis; and Resultz, FullMarks, and LAUSBUB for head lice infestations. The company also provides Bezalip SR for patients with high cholesterol or high levels of triglycerides; Proferrin, an iron supplement for the prevention and treatment of iron deficiency; Fiorinal 1 and Fiorinal C1 for the relief of tension-type headaches; Collatamp G for surgical implantation during surgery; PegaLAX, a laxative for the treatment of occasional constipation and irregularity; Mutaflor, a probiotic for the management and relief of chronic constipation and associated abdominal pain and cramps; MoviPrep for the cleansing of the colon in preparation for colonoscopy; and Soriatane to treat psoriasis and other keratinization disorders. In addition, it offers Pennsaid and Pennsaid 2% topical treatments for osteoarthritic pain; Vimovo for relief of arthritis symptoms; SYNERA and RAPYDAN topical patches used to help prevent pain associated with needle sticks and other superficial skin procedures; Yosprala for the prevention of heart attacks and strokes; and Heated Lidocaine/Tetracaine Patch, a topical patch applied prior to painful medical procedures. The company was formerly known as Nuvo Research Inc. and changed its name to Nuvo Pharmaceuticals Inc. in March 2016. Nuvo Pharmaceuticals Inc. was incorporated in 1983 and is headquartered in Mississauga, Canada.

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