Financial Comparison: NovoCure (NASDAQ:NVCR) vs. Paradigm Medical Industries (OTCMKTS:PDMI)

Paradigm Medical Industries (OTCMKTS:PDMI) and NovoCure (NASDAQ:NVCR) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

84.6% of NovoCure shares are owned by institutional investors. 11.1% of Paradigm Medical Industries shares are owned by insiders. Comparatively, 6.3% of NovoCure 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Paradigm Medical Industries and NovoCure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paradigm Medical Industries	0	0	0	0	N/A
NovoCure	0	3	3	0	2.50

NovoCure has a consensus target price of $25.50, suggesting a potential upside of 37.32%. Given NovoCure’s higher probable upside, analysts plainly believe NovoCure is more favorable than Paradigm Medical Industries.

Volatility and Risk

Paradigm Medical Industries has a beta of -0.47, indicating that its share price is 147% less volatile than the S&P 500. Comparatively, NovoCure has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Paradigm Medical Industries and NovoCure”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paradigm Medical Industries	N/A	N/A	N/A	N/A	N/A
NovoCure	$549.96 million	3.63	-$207.04 million	($1.81)	-10.26

Paradigm Medical Industries has higher earnings, but lower revenue than NovoCure.

Profitability

This table compares Paradigm Medical Industries and NovoCure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paradigm Medical Industries	N/A	N/A	N/A
NovoCure	-30.67%	-45.68%	-14.59%

Summary

NovoCure beats Paradigm Medical Industries on 5 of the 9 factors compared between the two stocks.

About Paradigm Medical Industries

Paradigm Medical Industries, Inc. develops, manufactures, sells, and markets medical devices for the early detection of glaucoma and other eye disorders in the United States. The company offers P-2000 biometric analyzer A-scans and P-2500 A-scans/pachymeters; P2700 A/B and P37-II A/B scans; blood flow analyzers for the detection and management of glaucoma and other retinal vascular disorders; P2200 pachymeter and P-2500 A-scan/pachymeters; and LD 500 and LD700 autoperimeters. It also provides corneal topographers, such as PARAVUE 300 for diagnostic and contact lens applications, as well as SURVEYOR 500 for cornea and anterior segment; PARAMAX, which analyzes the functionality of ganglion cells and identifies glaucoma suspects; P60 and P60 ACI ultrasound biomicroscopes; and PARACAM 1000, a non-contact endothelial microscope, as well as software and accessories. The company was founded in 1989 and is based in Salt Lake City, Utah.

About NovoCure

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company's TTFields devices include Optune Gio and Optune Lua. It also has ongoing clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.