NovoCure (NASDAQ:NVCR) versus Paradigm Medical Industries (OTCMKTS:PDMI) Critical Survey

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

Analyst Ratings

This is a breakdown of current ratings for NovoCure and Paradigm Medical Industries, as reported by MarketBeat.

	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 presently has a consensus price target of $25.50, indicating a potential upside of 41.51%.

Valuation and Earnings

This table compares NovoCure and Paradigm Medical Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NovoCure	$549.96 million	3.53	-$207.04 million	($1.81)	-9.96
Paradigm Medical Industries	N/A	N/A	N/A	N/A	N/A

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

Insider and Institutional Ownership

84.6% of NovoCure shares are held by institutional investors. 6.3% of NovoCure shares are held by company insiders. Comparatively, 11.1% of Paradigm Medical Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

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.