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 businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and media sentiment.

Is NVS or NVO a better dividend stock?

Novartis pays an annual dividend of $2.59 per share and has a dividend yield of 2.0%. Novo Nordisk A/S pays an annual dividend of $0.82 per share and has a dividend yield of 1.5%. Novartis pays out 37.7% 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.

Which has higher earnings and valuation, NVS or NVO?

Novo Nordisk A/S has lower revenue, but higher 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	$55.19B	5.03	$11.94B	$6.87	19.13
Novo Nordisk A/S	$42.12B	5.77	$14.64B	$3.64	14.95

Do analysts rate NVS or NVO?

Novartis presently has a consensus price target of $120.33, suggesting a potential downside of 8.46%. Novo Nordisk A/S has a consensus price target of $76.00, suggesting a potential upside of 39.69%. Given Novo Nordisk A/S's stronger consensus rating and higher probable 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)	2 Buy rating(s)	1 Strong Buy rating(s)	2.10
Novo Nordisk A/S	1 Sell rating(s)	10 Hold rating(s)	7 Buy rating(s)	2 Strong Buy rating(s)	2.50

Does the media prefer NVS or NVO?

In the previous week, Novo Nordisk A/S had 33 more articles in the media than Novartis. MarketBeat recorded 58 mentions for Novo Nordisk A/S and 25 mentions for Novartis. Novartis' average media sentiment score of 1.38 beat Novo Nordisk A/S's score of 0.71 indicating that Novartis is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Novartis	20 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Novo Nordisk A/S	31 Very Positive mention(s)	7 Positive mention(s)	8 Neutral mention(s)	11 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, NVS or NVO?

Novartis has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

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 insiders & institutionals have more ownership in NVS or NVO?

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

Summary

Novo Nordisk A/S beats Novartis on 13 of the 19 factors compared between the two stocks.