Repligen Corporation (NASDAQ: RGEN) and Novan (NASDAQ:NOVN) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Valuation and Earnings

This table compares Repligen Corporation and Novan’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Repligen Corporation $113.32 million 12.20 $29.54 million $0.51 72.55
Novan $768,999.00 128.66 -$49.04 million ($7.93) -0.78

Repligen Corporation has higher revenue and earnings than Novan. Novan is trading at a lower price-to-earnings ratio than Repligen Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Repligen Corporation and Novan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Repligen Corporation 15.61% 9.90% 5.93%
Novan N/A -194.61% -99.61%

Institutional & Insider Ownership

96.5% of Repligen Corporation shares are owned by institutional investors. Comparatively, 6.1% of Novan shares are owned by institutional investors. 1.5% of Repligen Corporation shares are owned by company insiders. Comparatively, 10.7% of Novan shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Repligen Corporation and Novan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Repligen Corporation 0 1 3 0 2.75
Novan 0 1 1 0 2.50

Repligen Corporation currently has a consensus price target of $46.00, indicating a potential upside of 24.32%. Novan has a consensus price target of $8.50, indicating a potential upside of 37.32%. Given Novan’s higher probable upside, analysts plainly believe Novan is more favorable than Repligen Corporation.

Summary

Repligen Corporation beats Novan on 9 of the 12 factors compared between the two stocks.

Repligen Corporation Company Profile

Repligen Corporation is a bioprocessing company. The Company is focused on the development, manufacture and commercialization of products used to improve the interconnected phases of the biological drug manufacturing process. The Company’s portfolio includes protein products, chromatography products, and filtration products. It provides Protein A ligands, a component of Protein A chromatography resins (media) used in the purification of virtually all monoclonal antibody (mAb)-based drugs on the market or in development. Its chromatography portfolio includes various products used in the downstream purification and quality control of biological drugs. Its OPUS pre-packed chromatography columns (PPCs) are used in the purification of clinical-stage biologics. Its filtration products include XCell Alternating Tangential Flow (ATF) Systems and Sius tangential flow filtration (TFF) cassettes. Sius TFF cassettes are used to concentrate clinical and commercial-stage biologic drugs.

Novan Company Profile

Novan, Inc. is a late-stage pharmaceutical company. The Company is engaged in the development and commercialization of therapies using its nitric oxide platform. The Company develops product candidates using its Nitricil technology, which enables the Company to engineer tunable new chemical entities (NCEs). The Company’s formulation science enables it to further tune the release of nitric oxide when applied to the skin by using the combinations of inactive ingredients. It is developing SB204 for the treatment of acne vulgaris in Phase III. The Company is developing its product candidate, SB206, for the treatment of external genital and perianal warts in Phase II. It is developing SB208, an investigational topical anti-fungal for the treatment of fungal infections of the skin and nails. It is developing SB204 for the treatment of inflammatory skin diseases. Its pipeline also includes SB414, a topical cream product candidate.

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