Novo Nordisk A/S (NVO) Competitors

Novartis (NYSE:NVS) and Novo Nordisk A/S (NYSE:NVO) are both large-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk, media sentiment and analyst recommendations.

Which has better valuation and earnings, NVS or NVO?

Novo Nordisk A/S has higher revenue and earnings than Novartis. Novo Nordisk A/S is trading at a lower price-to-earnings ratio than Novartis, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novartis	$50.32B	5.21	$11.94B	$6.87	18.07
Novo Nordisk A/S	$311.94B	0.79	$14.64B	$3.64	15.09

Which has more risk & volatility, NVS or NVO?

Novartis has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Is NVS or NVO a better dividend stock?

Novartis pays an annual dividend of $2.60 per share and has a dividend yield of 2.1%. Novo Nordisk A/S pays an annual dividend of $0.82 per share and has a dividend yield of 1.5%. Novartis pays out 37.8% of its earnings in the form of a dividend. Novo Nordisk A/S pays out 22.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Does the media prefer NVS or NVO?

In the previous week, Novo Nordisk A/S had 38 more articles in the media than Novartis. MarketBeat recorded 71 mentions for Novo Nordisk A/S and 33 mentions for Novartis. Novartis' average media sentiment score of 1.02 beat Novo Nordisk A/S's score of 0.48 indicating that Novartis is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Novartis	23 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Novo Nordisk A/S	22 Very Positive mention(s)	8 Positive mention(s)	29 Neutral mention(s)	10 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is NVS or NVO more profitable?

Novo Nordisk A/S has a net margin of 35.60% compared to Novartis' net margin of 25.64%. Novo Nordisk A/S's return on equity of 78.64% beat Novartis' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Novartis	25.64%	41.08%	16.83%
Novo Nordisk A/S	35.60%	78.64%	24.51%

Do analysts recommend NVS or NVO?

Novartis presently has a consensus target price of $120.33, indicating a potential downside of 3.05%. Novo Nordisk A/S has a consensus target price of $81.00, indicating a potential upside of 47.43%. Given Novo Nordisk A/S's stronger consensus rating and higher possible upside, analysts clearly believe Novo Nordisk A/S is more favorable than Novartis.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novartis	3 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.00
Novo Nordisk A/S	1 Sell rating(s)	11 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.19

Do insiders and institutionals hold more shares of NVS or NVO?

13.1% of Novartis shares are held by institutional investors. Comparatively, 11.5% of Novo Nordisk A/S shares are held by institutional investors. 0.0% of Novartis shares are held by company insiders. Comparatively, 0.1% of Novo Nordisk A/S shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Novo Nordisk A/S beats Novartis on 12 of the 19 factors compared between the two stocks.