Critical Analysis: REDHILL BIOPHAR/S (NASDAQ:RDHL) versus Novelion Therapeutics (NASDAQ:NVLN)
REDHILL BIOPHAR/S (NASDAQ:RDHL) and Novelion Therapeutics (NASDAQ:NVLN) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Risk and Volatility
REDHILL BIOPHAR/S has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Novelion Therapeutics has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
This table compares REDHILL BIOPHAR/S and Novelion Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|REDHILL BIOPHAR/S||$6.29 million||35.55||-$42.30 million||($1.40)||-4.53|
|Novelion Therapeutics||$130.43 million||0.11||-$108.33 million||N/A||N/A|
REDHILL BIOPHAR/S has higher earnings, but lower revenue than Novelion Therapeutics.
This table compares REDHILL BIOPHAR/S and Novelion Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for REDHILL BIOPHAR/S and Novelion Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
REDHILL BIOPHAR/S presently has a consensus target price of $14.50, indicating a potential upside of 128.71%. Given REDHILL BIOPHAR/S’s higher probable upside, equities analysts clearly believe REDHILL BIOPHAR/S is more favorable than Novelion Therapeutics.
Insider & Institutional Ownership
17.6% of REDHILL BIOPHAR/S shares are held by institutional investors. Comparatively, 35.0% of Novelion Therapeutics shares are held by institutional investors. 3.6% of Novelion Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Novelion Therapeutics beats REDHILL BIOPHAR/S on 7 of the 11 factors compared between the two stocks.
REDHILL BIOPHAR/S Company Profile
RedHill Biopharma Ltd., a specialty biopharmaceutical company, focuses on the development and commercialization of late clinical-stage drugs for the treatment of gastrointestinal diseases in the United States. It operates through two segments, Commercial Operations and Research & Development. The company's clinical-stage development programs comprise TALICIA, a drug that is in Phase III clinical trial for the helicobacter pylori infection; RHB-104 that is in Phase III clinical trials for crohn's disease, as well as that has completed Phase II clinical trial for multiple sclerosis; RHB-204 for pulmonary nontuberculous mycobacteria infections; BEKINDA 24 mg that has completed Phase III clinical trial for acute gastroenteritis and gastritis; BEKINDA 12 mg that has completed Phase II clinical trial for irritable bowel syndrome with diarrhea; RHB-106 for bowel preparation; and RHB-107 that has completed Phase II clinical trial for gastrointestinal and other solid tumors. It is also developing YELIVA that is in Phase IIa clinical trial for the treatment of advanced unresectable cholangiocarcinoma; is in Phase Ib/II clinical trial for refractory or relapsed multiple myeloma; and is in Phase II clinical trial for the treatment of advanced hepatocellular carcinoma. The company was founded in 2009 and is headquartered in Tel Aviv, Israel.
Novelion Therapeutics Company Profile
Novelion Therapeutics Inc., a biopharmaceutical company, develops a portfolio of therapies for individuals living with rare diseases in the United States, Brazil, and internationally. The company's commercial products include lomitapide hard capsule for the treatment of homozygous familial hypercholesterolemia in adults under the JUXTAPID and LOJUXTA brands; and metreleptin, a recombinant analogue of human leptin, which is indicated as an adjunct to diet as replacement therapy to treat the complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy under the MYALEPT brand. Its orphan drug-designated product candidate is zuretinol acetate, an oral synthetic retinoid, which is in development for the treatment of inherited retinal disease caused by underlying mutations in retinal pigment epithelium protein 65 and lecithin: retinol acyltransferase genes. The company was formerly known as QLT Inc. and changed its name to Novelion Therapeutics Inc. in November 2016. Novelion Therapeutics Inc. was founded in 1981 and is headquartered in Vancouver, Canada.
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