Analyzing NovaBay Pharmaceuticals (NYSE:NBY) & MorphoSys (NASDAQ:MOR)

NovaBay Pharmaceuticals (NYSE:NBY) and MorphoSys (NASDAQ:MOR) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Volatility & Risk

NovaBay Pharmaceuticals has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, MorphoSys has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for NovaBay Pharmaceuticals and MorphoSys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NovaBay Pharmaceuticals	0	0	0	0	N/A
MorphoSys	0	5	2	0	2.29

MorphoSys has a consensus target price of $11.78, indicating a potential downside of 35.17%. Given MorphoSys’ higher possible upside, analysts clearly believe MorphoSys is more favorable than NovaBay Pharmaceuticals.

Profitability

This table compares NovaBay Pharmaceuticals and MorphoSys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NovaBay Pharmaceuticals	-80.76%	-304.39%	-81.20%
MorphoSys	-226.79%	-694.31%	-22.55%

Institutional & Insider Ownership

23.3% of NovaBay Pharmaceuticals shares are owned by institutional investors. Comparatively, 18.4% of MorphoSys shares are owned by institutional investors. 0.1% of NovaBay Pharmaceuticals shares are owned by company insiders. Comparatively, 0.1% of MorphoSys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares NovaBay Pharmaceuticals and MorphoSys’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovaBay Pharmaceuticals	$14.73 million	0.18	-$9.64 million	($109.09)	-0.02
MorphoSys	$238.28 million	11.49	-$205.35 million	($3.48)	-5.22

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

Summary

NovaBay Pharmaceuticals beats MorphoSys on 7 of the 13 factors compared between the two stocks.

About NovaBay Pharmaceuticals

NovaBay Pharmaceuticals, Inc., a biopharmaceutical company, develops and sells eyecare, skincare, and wound care products in the United States and internationally. It offers Avenova Spray, a solution for removing foreign materials, including microorganisms and debris from skin around the eye, such as the eyelid; and wound care products, which are used for cleansing and irrigation as part of surgical procedures, as well as treating certain wounds, burns, ulcers, and other injuries under the NeutroPhase and PhaseOne brands. The company also provides dermatological solutions to address skincare concerns comprising keratosis pilaris, rosacea and eczema, anti-aging, hyperhidrosis, excessive hair, and acne under the DERMAdoctor brand. It sells its products through traditional and digital beauty retailers and distributors, as well as online. The company was formerly known as NovaCal Pharmaceuticals, Inc. and changed its name to NovaBay Pharmaceuticals, Inc. in February 2007. NovaBay Pharmaceuticals, Inc. was incorporated in 2000 and is headquartered in Emeryville, California.

About MorphoSys

MorphoSys AG, together with its subsidiaries, engages in the development and commercialization of therapeutics for patients suffering from various cancers in Europe, Asia, and the United States. The company's product pipeline includes Pelabresib that is in Phase 3 trials to treat myelofibrosis and thrombocythemia; Tulmimetostat, a product candidate in Phase 1/2 trials for the treatment of solid tumors and lymphomas; Felzartamab, an antibody directed against CD38 for renal autoimmune diseases and relapsed/refractory multiple myeloma; Ianalumab, a candidate in Phase 3 clinical trials for Sjögren's disease, lupus nephritis, and other autoimmune diseases; Abelacimab that is in Phase 3 trials for venous thromboembolism prevention and cancer-associated thrombosis; Setrusumab, which is in Phase 2/3 trials for osteogenesis imperfecta; and Bimagrumab, a product candidate in Phase 2b trials for adult obesity. It also develops MOR210/TJ210/HIB210 that is in Phase 1 clinical trials for relapsed or refractory advanced solid tumors; and NOV-8, a candidate in Phase 2 trials for the treatment of pulmonary sarcoidosis and dermatitis. The company has collaboration and licensing agreements with I-Mab Biopharma, Novartis, Anthos Therapeutics, Ultragenyx, Mereo BioPharma, Lilly, Human Immunology Biosciences, Inc. Incyte Corporation, and Xencor, Inc. MorphoSys AG was founded in 1992 and is headquartered in Planegg, Germany.