Financial Contrast: NovAccess Global (OTCMKTS:XSNX) vs. Lexicon Pharmaceuticals (NASDAQ:LXRX)

NovAccess Global (OTCMKTS:XSNX) and Lexicon Pharmaceuticals (NASDAQ:LXRX) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NovAccess Global and Lexicon Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovAccess Global	0	0	0	0	0.00
Lexicon Pharmaceuticals	1	2	3	0	2.33

Lexicon Pharmaceuticals has a consensus target price of $3.23, suggesting a potential upside of 89.71%. Given Lexicon Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Lexicon Pharmaceuticals is more favorable than NovAccess Global.

Risk & Volatility

NovAccess Global has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Lexicon Pharmaceuticals has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares NovAccess Global and Lexicon Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovAccess Global	N/A	N/A	N/A
Lexicon Pharmaceuticals	-96.77%	-52.90%	-26.69%

Institutional and Insider Ownership

74.7% of Lexicon Pharmaceuticals shares are owned by institutional investors. 1.4% of NovAccess Global shares are owned by insiders. Comparatively, 13.9% of Lexicon Pharmaceuticals shares are owned by 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 NovAccess Global and Lexicon Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovAccess Global	N/A	N/A	-$2.66 million	($0.09)	-0.01
Lexicon Pharmaceuticals	$31.08 million	19.88	-$200.40 million	($0.19)	-8.95

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

Summary

NovAccess Global beats Lexicon Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About NovAccess Global

NovAccess Global Inc., a biopharmaceutical company, develops novel immunotherapies to treat brain tumor patients in the United States. It specializes in cutting-edge research related to utilizing a patient’s immune system to attack the cancer. The company was incorporated in 1997 and is headquartered in Chagrin Falls, Ohio.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain and LX2761, which is in Phase I clinical development for gastrointestinal tract. Lexicon Pharmaceuticals, Inc. has strategic collaboration and license agreements with Bristol-Myers Squibb Company and Genentech, Inc. The company was incorporated in 1995 and is headquartered in The Woodlands, Texas.