Novartis (NVS) Competitors

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

Does the media prefer NVO or NVS?

In the previous week, Novo Nordisk A/S had 7 more articles in the media than Novartis. MarketBeat recorded 34 mentions for Novo Nordisk A/S and 27 mentions for Novartis. Novo Nordisk A/S's average media sentiment score of 1.26 beat Novartis' score of 0.94 indicating that Novo Nordisk A/S is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Novo Nordisk A/S	27 Very Positive mention(s)	4 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Novartis	15 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better valuation & earnings, NVO or NVS?

Novo Nordisk A/S has higher earnings, but lower revenue than Novartis. Novartis is trading at a lower price-to-earnings ratio than Novo Nordisk A/S, 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
Novo Nordisk A/S	$42.12B	7.32	$14.64B	$3.38	20.43
Novartis	$50.32B	5.12	$11.94B	$6.40	19.05

Do analysts recommend NVO or NVS?

Novo Nordisk A/S currently has a consensus target price of $112.00, suggesting a potential upside of 62.20%. Novartis has a consensus target price of $123.67, suggesting a potential upside of 1.45%. Given Novo Nordisk A/S's stronger consensus rating and higher probable upside, research analysts clearly believe Novo Nordisk A/S is more favorable than Novartis.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novo Nordisk A/S	2 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.27
Novartis	3 Sell rating(s)	6 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.00

Which has more risk & volatility, NVO or NVS?

Novo Nordisk A/S has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Novartis has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Is NVO or NVS a better dividend stock?

Novo Nordisk A/S pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Novartis pays an annual dividend of $2.60 per share and has a dividend yield of 2.1%. Novo Nordisk A/S pays out 48.5% of its earnings in the form of a dividend. Novartis pays out 40.6% 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.

Is NVO or NVS more profitable?

Novo Nordisk A/S has a net margin of 34.52% compared to Novartis' net margin of 24.70%. Novo Nordisk A/S's return on equity of 80.94% beat Novartis' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Novo Nordisk A/S	34.52%	80.94%	24.23%
Novartis	24.70%	39.44%	16.43%

Do institutionals and insiders believe in NVO or NVS?

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

Summary

Novo Nordisk A/S beats Novartis on 14 of the 18 factors compared between the two stocks.