Edesa Biotech (NASDAQ:EDSA) vs. Nuvectis Pharma (NASDAQ:NVCT) Critical Analysis

Nuvectis Pharma (NASDAQ:NVCT) and Edesa Biotech (NASDAQ:EDSA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nuvectis Pharma and Edesa Biotech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvectis Pharma	0	0	3	0	3.00
Edesa Biotech	0	0	1	0	3.00

Nuvectis Pharma presently has a consensus target price of $15.67, suggesting a potential upside of 89.90%. Edesa Biotech has a consensus target price of $21.00, suggesting a potential upside of 809.09%. Given Edesa Biotech’s higher probable upside, analysts clearly believe Edesa Biotech is more favorable than Nuvectis Pharma.

Insider & Institutional Ownership

96.8% of Nuvectis Pharma shares are held by institutional investors. Comparatively, 5.5% of Edesa Biotech shares are held by institutional investors. 35.8% of Nuvectis Pharma shares are held by company insiders. Comparatively, 25.0% of Edesa Biotech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Nuvectis Pharma and Edesa Biotech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvectis Pharma	N/A	N/A	-$22.26 million	($1.11)	-7.43
Edesa Biotech	N/A	N/A	-$6.17 million	($1.87)	-1.24

Nuvectis Pharma is trading at a lower price-to-earnings ratio than Edesa Biotech, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nuvectis Pharma and Edesa Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvectis Pharma	N/A	-155.80%	-104.02%
Edesa Biotech	N/A	-233.69%	-124.14%

Risk & Volatility

Nuvectis Pharma has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Edesa Biotech has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

Nuvectis Pharma beats Edesa Biotech on 6 of the 10 factors compared between the two stocks.

About Nuvectis Pharma

Nuvectis Pharma, Inc., a biopharmaceutical company, focuses on the development of precision medicines for the treatment of serious unmet medical needs in oncology. The company's lead product candidate is NXP800, a novel small molecule that is in Phase 1b clinical trials for the treatment of patients with platinum-resistant, ARID1a-mutated ovarian carcinoma. It is also developing NXP900, a small molecule drug candidate, which is in Phase 1a clinical trails that inhibits the Proto-oncogene c-Src and YES1 kinases. It has license agreement with the CRT Pioneer Fund for the NXP800 and any of related derivatives; and the University of Edinburgh for the NXP900 and any of associated derivatives. The company was formerly known as Centry Pharma, Inc. and changed its name to Nuvectis Pharma, Inc. in July 2021. Nuvectis Pharma, Inc. was incorporated in 2020 and is based in Fort Lee, New Jersey.

About Edesa Biotech

Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of pharmaceutical products for inflammatory and immune-related diseases. Its lead product candidates are EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome in Covid-19 patients; and EB01, a topical vanishing cream containing non-steroidal anti-inflammatory compound that has completed Phase 2b clinical study to treat chronic allergic contact dermatitis. The company also develops EB02, an extension of secretory phospholipase 2 anti-inflammatory cream for treating erythema, swelling, and exudation associated with hemorrhoids disease; and EB06, an anti- chemokine ligand 10 (CXCL10) monoclonal antibody in vitiligo. It has a collaboration agreement with NovImmune SA to develop monoclonal antibodies targeting products containing toll-like receptor 4 and CXCL10 for therapeutic, prophylactic, and diagnostic applications in humans and animals; and Yissum Research Development Company for the development of products for therapeutic, prophylactic, and diagnostic uses in topical dermal and anorectal applications, as well as for the use in dermatologic and gastrointestinal conditions. The company was founded in 2015 and is headquartered in Markham, Canada.