Avid Bioservices (NASDAQ: CDMO) and Novus Therapeutics (NASDAQ:NVUS) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Avid Bioservices and Novus Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Bioservices 0 0 1 0 3.00
Novus Therapeutics 0 0 1 0 3.00

Avid Bioservices currently has a consensus target price of $10.00, indicating a potential upside of 311.52%. Novus Therapeutics has a consensus target price of $7.00, indicating a potential upside of 94.44%. Given Avid Bioservices’ higher probable upside, equities research analysts plainly believe Avid Bioservices is more favorable than Novus Therapeutics.


This table compares Avid Bioservices and Novus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Bioservices -39.23% -52.55% -24.77%
Novus Therapeutics N/A -156.99% -140.33%

Valuation & Earnings

This table compares Avid Bioservices and Novus Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Bioservices $57.63 million 2.34 -$28.15 million ($0.70) -3.47
Novus Therapeutics N/A N/A -$37.95 million N/A N/A

Avid Bioservices has higher revenue and earnings than Novus Therapeutics.

Insider and Institutional Ownership

18.5% of Avid Bioservices shares are owned by institutional investors. Comparatively, 41.1% of Novus Therapeutics shares are owned by institutional investors. 2.5% of Avid Bioservices shares are owned by company insiders. Comparatively, 5.2% of Novus Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Avid Bioservices has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Novus Therapeutics has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.


Avid Bioservices beats Novus Therapeutics on 6 of the 9 factors compared between the two stocks.

Avid Bioservices Company Profile

Avid Bioservices, Inc., formerly Peregrine Pharmaceuticals, Inc., is a biopharmaceutical company. The Company is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. The Company delivers pharmaceutical products through its contract manufacturing business and through licensing its development-stage immunotherapy products. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. Its services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The Company also provides a variety of process development activities, including cell line development and optimization.

Novus Therapeutics Company Profile

Novus Therapeutics, Inc., formerly Tokai Pharmaceuticals, Inc., is a pharmaceutical company. The Company is focused on the acquisition, development, and commercialization of ear, nose, and throat products. It has two platforms: OP-01 Foam Platform and OP-02 Surfactant Program. OP-01 is developed with the intent to be used as a delivery vehicle for drugs treating ears, as well as the nasal and sinus cavities. OP-01 is currently being developed as an improved treatment option for acute otitis externa. OP-02 is a daily nasal spray that is designed to improve and maintain a healthy middle ear. OP-02 is being developed as a potential treatment option for patients with otitis media and Eustachian tube dysfunction. OP-02 is a combination drug product, which comprises two components: surfactant dipalmitoylphosphatidylcholine and a spreading agent cholesteryl palmitate. The product is sprayed through the nostrils toward the opening of the Eustachian tube at the back of the nasal cavity.

Receive News & Ratings for Avid Bioservices Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avid Bioservices and related companies with MarketBeat.com's FREE daily email newsletter.