Novan (NASDAQ:NOVN) vs. Clene (NASDAQ:CLNN) Financial Survey

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

Analyst Ratings

This is a breakdown of recent recommendations for Novan and Clene, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novan 0 0 3 0 3.00
Clene 0 0 4 0 3.00

Novan presently has a consensus price target of $2.50, indicating a potential downside of 69.77%. Clene has a consensus price target of $22.25, indicating a potential upside of 204.38%. Given Clene’s higher possible upside, analysts plainly believe Clene is more favorable than Novan.

Profitability

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

Net Margins Return on Equity Return on Assets
Novan -759.49% -274.05% -54.30%
Clene N/A -69.25% -60.00%

Insider & Institutional Ownership

17.8% of Novan shares are owned by institutional investors. Comparatively, 7.5% of Clene shares are owned by institutional investors. 1.7% of Novan shares are owned by insiders. Comparatively, 21.2% of Clene shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Novan and Clene’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novan $4.92 million 31.62 -$29.29 million ($2.60) -3.18
Clene $210,000.00 2,140.51 -$19.28 million ($1.23) -5.94

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

Volatility & Risk

Novan has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Clene has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Summary

Clene beats Novan on 9 of the 13 factors compared between the two stocks.

Novan Company Profile

Novan, Inc. is a biotechnology company, which engages in leveraging nitric oxide’s natural antiviral and immunomodulatory mechanisms of action to treat dermatological and oncovirus-mediated diseases. Its products pipeline include SB204, SB206, SB208, and SB414. The company was founded by Mark Schoenfisch and Nathan Stasko in 2006 and is headquartered in Morrisville, NC.

Clene Company Profile

Clene Inc., a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of novel clean surfaced nanotechnology (CSN) therapeutics. The company has a nanotechnology drug suspension; and engages in the development and commercialization of dietary supplements. Its lead drug is CNM-Au8, which is being studied in various clinical trials, including a Phase 2 study for the treatment of stable multiple sclerosis; a Phase 2 biomarker study in Parkinson's; and Phase 2 and Phase 3 trials to investigate the potential for disease modification for neurodegenerative diseases. The company's products also include CNM-AgZn17, a topical gel polymer suspension of silver and zinc ions that is being developed for the treatment of infectious diseases and to accelerate wound healing; CNM-ZnAg, a broad-spectrum antiviral and antibacterial agent to treat disease-causing infections, such as COVID-19 and to provide immune support for symptom resolution; and CNM-PtAu7, a gold-platinum CSN therapeutic for oncology applications. Clene Inc. is headquartered in Salt Lake City, Utah.

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