NovoCure (NASDAQ:NVCR) vs. Evogene (NASDAQ:EVGN) Head-To-Head Analysis

NovoCure (NASDAQ:NVCR) and Evogene (NASDAQ:EVGN) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Valuation & Earnings

This table compares NovoCure and Evogene”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovoCure	$605.22 million	2.62	-$168.63 million	($1.56)	-9.08
Evogene	$8.51 million	0.84	-$16.49 million	($2.25)	-0.59

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

Profitability

This table compares NovoCure and Evogene’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovoCure	-27.13%	-47.74%	-13.79%
Evogene	-211.61%	-109.96%	-38.47%

Analyst Ratings

This is a summary of recent recommendations for NovoCure and Evogene, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovoCure	1	3	4	0	2.38
Evogene	1	0	1	1	2.67

NovoCure currently has a consensus target price of $27.50, indicating a potential upside of 94.21%. Evogene has a consensus target price of $3.50, indicating a potential upside of 163.28%. Given Evogene’s stronger consensus rating and higher possible upside, analysts clearly believe Evogene is more favorable than NovoCure.

Risk & Volatility

NovoCure has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Evogene has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

84.6% of NovoCure shares are held by institutional investors. Comparatively, 10.4% of Evogene shares are held by institutional investors. 5.5% of NovoCure shares are held by insiders. Comparatively, 7.4% of Evogene shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

NovoCure beats Evogene on 8 of the 15 factors compared between the two stocks.

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.

About Evogene

Evogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.