Comparing Paradigm Medical Industries (OTCMKTS:PDMI) and NovoCure (NASDAQ:NVCR)

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

Valuation and Earnings

This table compares NovoCure and Paradigm Medical Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovoCure	$509.34 million	3.68	-$207.04 million	($1.81)	-9.58
Paradigm Medical Industries	N/A	N/A	N/A	N/A	N/A

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

Institutional and Insider Ownership

84.6% of NovoCure shares are owned by institutional investors. 6.3% of NovoCure shares are owned by insiders. Comparatively, 11.1% of Paradigm Medical Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for NovoCure and Paradigm Medical Industries, as reported by MarketBeat.com.

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

NovoCure currently has a consensus target price of $25.50, suggesting a potential upside of 45.13%.

Risk and Volatility

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

Profitability

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

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

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.

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.