Galmed Pharmaceuticals (NASDAQ:GLMD) vs. Novus Therapeutics (NASDAQ:NVUS) Head to Head Review

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

Profitability

This table compares Novus Therapeutics and Galmed Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novus Therapeutics N/A -100.64% -88.15%
Galmed Pharmaceuticals N/A -12.23% -11.84%

Volatility and Risk

Novus Therapeutics has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500. Comparatively, Galmed Pharmaceuticals has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500.

Valuation & Earnings

This table compares Novus Therapeutics and Galmed Pharmaceuticals’ gross 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 -$14.06 million ($1.56) -0.56
Galmed Pharmaceuticals $2.04 million 66.04 -$9.86 million ($0.54) -11.87

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

Analyst Ratings

This is a summary of recent ratings and target prices for Novus Therapeutics and Galmed Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novus Therapeutics 0 0 1 0 3.00
Galmed Pharmaceuticals 0 0 5 0 3.00

Novus Therapeutics currently has a consensus price target of $10.00, indicating a potential upside of 1,036.36%. Galmed Pharmaceuticals has a consensus price target of $32.20, indicating a potential upside of 402.34%. Given Novus Therapeutics’ higher possible upside, analysts plainly believe Novus Therapeutics is more favorable than Galmed Pharmaceuticals.

Insider & Institutional Ownership

26.0% of Novus Therapeutics shares are owned by institutional investors. Comparatively, 35.6% of Galmed Pharmaceuticals shares are owned by institutional investors. 5.7% of Novus Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Galmed Pharmaceuticals beats Novus Therapeutics on 7 of the 11 factors compared between the two stocks.

Novus Therapeutics Company Profile

Novus Therapeutics, Inc., a pharmaceutical company, focuses on developing products for patients with disorders of ear, nose, and throat. Its lead product is (OP-02), a surfactant-based combination drug product for patients at risk for, or with, otitis media (OM) (middle ear inflammation with or without infection). The company also has a foam-based drug delivery technology (OP-01) that could be used to deliver drugs into the ear, nose, and sinus cavities. Novus Therapeutics, Inc. is headquartered in Irvine, California.

Galmed Pharmaceuticals Company Profile

Galmed Pharmaceuticals Ltd., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of liver diseases. The company is develops Aramchol, an oral therapy, which is completed ARREST Phase IIb clinical study for the treatment of patients with overweight or obesity, and who are pre-diabetic or type-II-diabetic with non-alcoholic steato-hepatitis. It also evaluates Aramchol through ARRIVE Study, a proof-of-concept Phase IIa clinical trial, with HIV-associated non-alcoholic fatty liver disease and lipodystrophy. The company was founded in 2000 and is headquartered in Tel Aviv, Israel.

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