NVS vs. LLY, NVO, JNJ, MRK, ABBV, AZN, ABT, PFE, VRTX, and SNY
Should you be buying Novartis stock or one of its competitors? The main competitors of Novartis include Eli Lilly and Company (LLY), Novo Nordisk A/S (NVO), Johnson & Johnson (JNJ), Merck & Co., Inc. (MRK), AbbVie (ABBV), AstraZeneca (AZN), Abbott Laboratories (ABT), Pfizer (PFE), Vertex Pharmaceuticals (VRTX), and Sanofi (SNY). These companies are all part of the "pharmaceutical preparations" industry.
Novartis (NYSE:NVS) and Eli Lilly and Company (NYSE:LLY) are both large-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, media sentiment, analyst recommendations, risk, dividends, institutional ownership, earnings, community ranking and profitability.
Novartis has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Eli Lilly and Company has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Novartis pays an annual dividend of $2.43 per share and has a dividend yield of 2.3%. Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Novartis pays out 32.8% of its earnings in the form of a dividend. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Novartis is clearly the better dividend stock, given its higher yield and lower payout ratio.
13.1% of Novartis shares are held by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are held by institutional investors. 0.0% of Novartis shares are held by company insiders. Comparatively, 0.1% of Eli Lilly and Company shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
In the previous week, Eli Lilly and Company had 46 more articles in the media than Novartis. MarketBeat recorded 55 mentions for Eli Lilly and Company and 9 mentions for Novartis. Novartis' average media sentiment score of 1.47 beat Eli Lilly and Company's score of 0.64 indicating that Novartis is being referred to more favorably in the media.
Eli Lilly and Company received 648 more outperform votes than Novartis when rated by MarketBeat users. Likewise, 70.13% of users gave Eli Lilly and Company an outperform vote while only 61.47% of users gave Novartis an outperform vote.
Novartis has a net margin of 31.33% compared to Eli Lilly and Company's net margin of 17.08%. Eli Lilly and Company's return on equity of 56.98% beat Novartis' return on equity.
Novartis currently has a consensus target price of $116.67, indicating a potential upside of 11.15%. Eli Lilly and Company has a consensus target price of $787.53, indicating a potential downside of 11.01%. Given Novartis' higher probable upside, equities research analysts plainly believe Novartis is more favorable than Eli Lilly and Company.
Novartis has higher revenue and earnings than Eli Lilly and Company. Novartis is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
Summary
Novartis and Eli Lilly and Company tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NVS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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