NovoCure (NASDAQ:NVCR – Get Free Report) and Flora Growth (NASDAQ:FLGC – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Valuation and Earnings
This table compares NovoCure and Flora Growth”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NovoCure | $655.35 million | 2.39 | -$136.23 million | ($1.06) | -12.67 |
| Flora Growth | $57.61 million | 0.05 | -$15.91 million | ($32.49) | -0.09 |
Institutional & Insider Ownership
84.6% of NovoCure shares are held by institutional investors. Comparatively, 36.0% of Flora Growth shares are held by institutional investors. 6.6% of NovoCure shares are held by insiders. Comparatively, 2.3% of Flora Growth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
NovoCure has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
Profitability
This table compares NovoCure and Flora Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NovoCure | -21.25% | -44.00% | -15.85% |
| Flora Growth | -32.03% | -64.02% | -34.46% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for NovoCure and Flora Growth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NovoCure | 1 | 4 | 2 | 0 | 2.14 |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
NovoCure currently has a consensus target price of $20.80, suggesting a potential upside of 54.88%. Given NovoCure’s stronger consensus rating and higher possible upside, analysts clearly believe NovoCure is more favorable than Flora Growth.
Summary
NovoCure beats Flora Growth on 11 of the 14 factors compared between the two stocks.
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 Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
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