Critical Analysis: NovelStem International (NSTM) and Its Competitors

NovelStem International (OTCMKTS:NSTM) is one of 79 public companies in the “Diagnostics & Research” industry, but how does it contrast to its peers? We will compare NovelStem International to similar companies based on the strength of its earnings, analyst recommendations, risk, institutional ownership, dividends, profitability and valuation.

Volatility & Risk

NovelStem International has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, NovelStem International’s peers have a beta of -0.40, indicating that their average share price is 140% less volatile than the S&P 500.

Profitability

This table compares NovelStem International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovelStem International	-9,166.67%	N/A	-73.18%
NovelStem International Competitors	-415.67%	-798.15%	-22.91%

Earnings & Valuation

This table compares NovelStem International and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NovelStem International	$10,000.00	-$4.19 million	-1.05
NovelStem International Competitors	$829.24 million	$42.36 million	-201.38

NovelStem International’s peers have higher revenue and earnings than NovelStem International. NovelStem International is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for NovelStem International and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovelStem International	0	0	0	0	N/A
NovelStem International Competitors	78	422	478	7	2.42

As a group, “Diagnostics & Research” companies have a potential upside of 5.71%. Given NovelStem International’s peers higher probable upside, analysts plainly believe NovelStem International has less favorable growth aspects than its peers.

Insider & Institutional Ownership

31.7% of shares of all “Diagnostics & Research” companies are owned by institutional investors. 13.6% of NovelStem International shares are owned by insiders. Comparatively, 24.6% of shares of all “Diagnostics & Research” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

NovelStem International peers beat NovelStem International on 7 of the 10 factors compared.

NovelStem International Company Profile

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.