Lianluo Smart (NASDAQ:LLIT) and Novocure (NASDAQ:NVCR) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Lianluo Smart and Novocure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lianluo Smart 0 0 0 0 N/A
Novocure 0 3 4 0 2.57

Novocure has a consensus target price of $48.57, suggesting a potential downside of 8.20%. Given Novocure’s higher probable upside, analysts clearly believe Novocure is more favorable than Lianluo Smart.

Institutional and Insider Ownership

0.7% of Lianluo Smart shares are held by institutional investors. Comparatively, 61.8% of Novocure shares are held by institutional investors. 22.9% of Lianluo Smart shares are held by company insiders. Comparatively, 5.6% of Novocure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Lianluo Smart and Novocure’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lianluo Smart $560,000.00 46.17 -$8.91 million N/A N/A
Novocure $248.07 million 20.43 -$63.56 million ($0.69) -76.68

Lianluo Smart has higher earnings, but lower revenue than Novocure.

Volatility & Risk

Lianluo Smart has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Novocure has a beta of 3.04, indicating that its share price is 204% more volatile than the S&P 500.

Profitability

This table compares Lianluo Smart and Novocure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lianluo Smart N/A N/A N/A
Novocure -20.42% -47.23% -16.47%

Summary

Lianluo Smart beats Novocure on 6 of the 11 factors compared between the two stocks.

Lianluo Smart Company Profile

Lianluo Smart Limited, through its subsidiaries, designs, develops, markets, and distributes medical products and medical components primarily in the People's Republic of China. The company offers medical devices, including sleep apnea diagnostic products, general hospital products, medical compressors, and related supporting products, such as laryngoscope. It also distributes medical products designed and manufactured by other companies. The company sells its products primarily through distributors; and directly to hospital, physical examination centers, and governmental agencies, as well as to individuals. The company was formerly known as Dehaier Medical Systems Limited and changed its name to Lianluo Smart Limited in November 2016. Lianluo Smart Limited was founded in 2003 and is headquartered in Beijing, the People's Republic of China. Lianluo Smart Limited operates as a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

Novocure Company Profile

Novocure Ltd. is global oncology company, which engages in the development and commercialization of its innovative therapy. It focuses on the commercial adoption of Optune, and its Tumor Treating Fields delivery system, for the treatment of glioblastoma (GBM), and to advance programs testing the efficacy and safety of Optune in multiple solid tumor indications through clinical pipeline. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.

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