Head-To-Head Contrast: Nuvectis Pharma (NASDAQ:NVCT) versus Edesa Biotech (NASDAQ:EDSA)

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

Analyst Ratings

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

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

Edesa Biotech currently has a consensus price target of $21.00, suggesting a potential upside of 753.66%. Nuvectis Pharma has a consensus price target of $15.67, suggesting a potential upside of 64.91%. Given Edesa Biotech’s higher possible upside, equities research analysts clearly believe Edesa Biotech is more favorable than Nuvectis Pharma.

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Edesa Biotech and Nuvectis Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edesa Biotech	N/A	N/A	-$6.17 million	($1.87)	-1.32
Nuvectis Pharma	N/A	N/A	-$22.26 million	($1.11)	-8.56

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.

Risk & Volatility

Edesa Biotech has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Nuvectis Pharma has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Profitability

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

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

Summary

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

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.

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.