Ambu A/S (OTCMKTS:AMBBY – Get Free Report) and NovoCure (NASDAQ:NVCR – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Institutional & Insider Ownership
84.6% of NovoCure shares are owned by institutional investors. 6.6% of NovoCure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Ambu A/S and NovoCure, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ambu A/S | 0 | 1 | 0 | 0 | 2.00 |
| NovoCure | 1 | 4 | 2 | 0 | 2.14 |
NovoCure has a consensus price target of $21.20, indicating a potential upside of 35.98%. Given NovoCure’s stronger consensus rating and higher probable upside, analysts plainly believe NovoCure is more favorable than Ambu A/S.
Valuation & Earnings
This table compares Ambu A/S and NovoCure”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ambu A/S | $894.37 million | 3.06 | $90.19 million | $0.30 | 38.80 |
| NovoCure | $655.35 million | 2.77 | -$136.23 million | ($1.30) | -11.99 |
Ambu A/S has higher revenue and earnings than NovoCure. NovoCure is trading at a lower price-to-earnings ratio than Ambu A/S, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ambu A/S has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, NovoCure has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares Ambu A/S and NovoCure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ambu A/S | 8.18% | 8.49% | 6.75% |
| NovoCure | -21.25% | -44.00% | -15.85% |
Summary
Ambu A/S beats NovoCure on 7 of the 13 factors compared between the two stocks.
About Ambu A/S
Ambu A/S develops, produces, and sells medical devices to hospitals, clinics, and rescue services worldwide. The company offers anaesthesia, and patient monitoring and diagnostics products. The company also offers endoscopy products, such as bronchoscopes, rhinolaryngoscopes, duodenoscopes, cystoscopes, and display units; and neurology products, including EEG and EMG electrodes, EMG guided injections, and intraoperative monitoring products. It also provides cardiology products consisting of airway management and anaesthesia products, such as bronchoscopes, video laryngoscopes, double and single lumen tubes, endobronchial blockers, laryngeal and face masks, breathing bags, and resuscitators. In addition, the company offers extrication collars, CPR breathing barriers, video laryngoscopes, and training manikins. The company was founded in 1937 and is headquartered in Ballerup, Denmark.
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.
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