Review of Infinity Pharmaceuticals (NASDAQ: INFI) and Novan (NASDAQ: NOVN)


Infinity Pharmaceuticals (NASDAQ:INFI – Get Rating) and Novan (NASDAQ:NOVN – Get Rating) are both small-cap medical companies, but which is the better company? We will compare the two companies based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of Infinity Pharmaceuticals and Novan.

Net margins Return on equity return on assets
Infinite Pharmaceuticals -2,254.97% -175.11% -51.97%
Novan -838.95% -165.01% -40.79%

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for Infinity Pharmaceuticals and Novan, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Infinite Pharmaceuticals 0 0 6 0 3.00
Novan 0 0 3 0 3.00

Infinity Pharmaceuticals currently has a consensus target price of $6.83, indicating a potential upside of 836.07%. Novan has a consensus target price of $20.00, indicating a potential upside of 773.36%. Given Infinity Pharmaceuticals’ likely higher upside, equity research analysts clearly believe that Infinity Pharmaceuticals is more favorable than Novan.

Institutional and insider ownership

54.7% of Infinity Pharmaceuticals shares are held by institutional investors. By comparison, 13.0% of Novan’s shares are held by institutional investors. 8.8% of the shares of Infinity Pharmaceuticals are held by insiders of the company. By comparison, 2.0% of Novan’s stock is held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Infinity Pharmaceuticals has a beta of 2.17, which means its stock price is 117% more volatile than the S&P 500. Comparatively, Novan has a beta of 0.2, which means its stock price is 80% less volatile than the S&P 500.

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of Infinity Pharmaceuticals and Novan.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Infinite Pharmaceuticals $1.86 million 34.99 -$45.26 million ($0.52) -1.40
Novan $2.96 million 14.83 -$29.69 million ($1.88) -1.22

Novan has higher revenues and profits than Infinity Pharmaceuticals. Infinity Pharmaceuticals trades at a lower price-to-earnings ratio than Novan, indicating that it is currently the more affordable of the two stocks.

Summary

Infinity Pharmaceuticals beats Novan on 7 out of 12 factors compared between the two stocks.

About Infinity Pharmaceuticals (Get an evaluation)

Infinity Pharmaceuticals, Inc., a biopharmaceutical company, is focused on developing new drugs for people with cancer. Its product candidate is IPI-549, an orally-administered clinical-stage immuno-oncology product candidate that inhibits the enzyme phosphoinositide-3-kinase-gamma, which is in phase 2 clinical trials for the treatment of cancer. triple negative metastatic breast and urothelial cancer; and phase 1/1b clinical trials for the treatment of solid tumors. The company has entered into strategic alliances with Intellikine, Inc. to discover, develop and commercialize pharmaceutical products targeting the delta and/or gamma isoforms of PI3K; Verastem, Inc. to research, develop, market and manufacture duvelisib and duvelisib-containing products; and PellePharm, Inc. to develop and commercialize the rights to its Hedgehog inhibitor program, IPI-926, a clinical-stage product candidate, as well as collaboration agreements with Arcus Biosciences, Inc., F. Hoffmann-La Roche Ltd. . and Bristol Company Myers Squibb. Infinity Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Cambridge, Massachusetts.

About Nova (Get an evaluation)

Novan LogoNovan, Inc., a pre-commercial nitric oxide pharmaceutical company, is focused on dermatology and anti-infective therapies. Its clinical-stage dermatological drug candidates include SB204, a topical monotherapy for the treatment of acne vulgaris; SB206, a topical antiviral gel for the treatment of viral skin infections; SB208, a broad-spectrum topical antifungal gel for the treatment of fungal infections of the skin and nails, including athlete’s foot and fungal nail infections; and SB414, a topical cream-based gel candidate for the treatment of inflammatory skin diseases. The Company is also developing SB207, an antiviral product candidate for the treatment of external genital warts; WH602, an intravaginal gel containing nitric oxide to treat high-risk human papillomavirus (HPV); WH504, a non-gel formulation product candidate to treat high-risk HPV; and SB019 for the treatment of SARS-CoV-2. Novan, Inc. has a license agreement with Sato Pharmaceutical Co., Ltd. ; and a strategic alliance with Orion Corporation. Novan, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina.



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