NovaBay Pharmaceuticals (NYSE:NBY) and Nuvo Pharmaceuticals (OTCMKTS:MRVFF) Head-To-Head Comparison

NovaBay Pharmaceuticals (NYSE:NBY) and Nuvo Pharmaceuticals (OTCMKTS:MRVFF) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NovaBay Pharmaceuticals	-102.72%	-7,293.78%	-158.41%
Nuvo Pharmaceuticals	20.88%	-1,996.22%	14.25%

Earnings and Valuation

This table compares NovaBay Pharmaceuticals and Nuvo Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovaBay Pharmaceuticals	$9.78 million	1.08	-$9.64 million	($53.72)	-0.03
Nuvo Pharmaceuticals	$54.98 million	0.20	-$25.70 million	($0.12)	-8.16

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NovaBay Pharmaceuticals and Nuvo Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovaBay Pharmaceuticals	0	0	1	0	3.00
Nuvo Pharmaceuticals	0	0	0	0	0.00

NovaBay Pharmaceuticals presently has a consensus price target of $0.85, suggesting a potential downside of 53.30%. Given NovaBay Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe NovaBay Pharmaceuticals is more favorable than Nuvo Pharmaceuticals.

Institutional & Insider Ownership

23.3% of NovaBay Pharmaceuticals shares are owned by institutional investors. 0.1% of NovaBay Pharmaceuticals shares are owned by company insiders. Comparatively, 7.0% of Nuvo Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

NovaBay Pharmaceuticals has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Nuvo Pharmaceuticals has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

About NovaBay Pharmaceuticals

NovaBay Pharmaceuticals, Inc., a biopharmaceutical company, develops and sells eyecare, skincare, and wound care products in the United States and internationally. It offers Avenova Spray, a solution for removing foreign materials, including microorganisms and debris from skin around the eye, such as the eyelid; and wound care products, which are used for cleansing and irrigation as part of surgical procedures, as well as treating certain wounds, burns, ulcers, and other injuries under the NeutroPhase and PhaseOne brands. The company also provides dermatological solutions to address skincare concerns comprising keratosis pilaris, rosacea and eczema, anti-aging, hyperhidrosis, excessive hair, and acne under the DERMAdoctor brand. It sells its products through traditional and digital beauty retailers and distributors, as well as online. The company was formerly known as NovaCal Pharmaceuticals, Inc. and changed its name to NovaBay Pharmaceuticals, Inc. in February 2007. NovaBay Pharmaceuticals, Inc. was incorporated in 2000 and is headquartered in Emeryville, California.

About Nuvo Pharmaceuticals

Nuvo Pharmaceuticals, Inc. is a pharmaceutical company, which is engaged in developing innovative therapeutic pharmaceutical products. It operates through the following segments: Commercial Business, Production and Service Business, and Licensing and Royalty Business. The Commercial Business segment includes Blexten, Cambia, the canadian business for Resultz and Suvexx, and mature assets. The Production and Service Business segment supplies Pennsaid to Horizon for the U.S. market and is engaged in ongoing partnering efforts for Pennsaid. The Licensing and Royalty Business segment engages in the selling of Vimovo. The company was founded on August 22, 1983 and is headquartered in Mississauga, Canada.