Contrasting Novocure (NASDAQ:NVCR) & TearLab (NASDAQ:TEAR)

TearLab (OTCMKTS:TEAR) and Novocure (NASDAQ:NVCR) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

66.8% of Novocure shares are held by institutional investors. 5.2% of TearLab shares are held by insiders. Comparatively, 5.6% of Novocure shares are held 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.

Earnings & Valuation

This table compares TearLab and Novocure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TearLab $25.00 million 0.03 -$2.25 million N/A N/A
Novocure $248.07 million 35.57 -$63.56 million ($0.69) -129.22

TearLab has higher earnings, but lower revenue than Novocure.

Analyst Ratings

This is a breakdown of current ratings for TearLab and Novocure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TearLab 0 0 0 0 N/A
Novocure 0 3 3 0 2.50

Novocure has a consensus price target of $79.40, suggesting a potential downside of 10.95%. Given Novocure’s higher possible upside, analysts clearly believe Novocure is more favorable than TearLab.


This table compares TearLab and Novocure’s net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
TearLab -20.63% N/A -30.88%
Novocure -8.43% -18.45% -6.95%

Risk & Volatility

TearLab has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Novocure has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.


Novocure beats TearLab on 9 of the 11 factors compared between the two stocks.

About TearLab

TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally. It offers TearLab Osmolority System, a proprietary in vitro diagnostic tear testing platform that measures tear film osmolarity for the diagnosis of dry eye disease; and enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. Its TearLab Osmolarity System consists of TearLab disposable, a single-use microfluidic microchip; TearLab pen, a hand-held device that interfaces with the TearLab disposable; and TearLab reader, a small desktop unit that allows for the docking of the TearLab pen, as well as provides a quantitative reading for the operator. The company was formerly known as OccuLogix, Inc. TearLab Corporation was founded in 1996 and is headquartered in San Diego, California.

About Novocure

Novocure Ltd. is global oncology company, which engages in the development and commercialization of its innovative therapy. It focuses on the commercial adoption of Optune, and its Tumor Treating Fields delivery system, for the treatment of glioblastoma (GBM), and to advance programs testing the efficacy and safety of Optune in multiple solid tumor indications through clinical pipeline. The company was founded by Yoram Palti in 2000 and is headquartered in St. Helier, Jersey.

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