AstraZeneca PLC (AZN) vs Novo Nordisk A/S (NVO)

AstraZeneca PLC and Novo Nordisk A/S are both Drug Manufacturers General companies. AstraZeneca PLC is the larger, with a market value of $246.3B against $127.8B — 1.9× the size. Novo Nordisk A/S trades at the lower P/E: 9.4× against 23.6×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 8.61%. Novo Nordisk A/S has the higher net margin (35.5% vs 17.0%) and the higher return on invested capital (28.7% vs 11.7%). Both pay a dividend; Novo Nordisk A/S yields more (4.65% vs 2.02%). Across the 23 metrics below, Novo Nordisk A/S leads on 17 and AstraZeneca PLC on 6.

Valuation

Metric AZN NVO Drug Manufacturers General median
P/E 23.62 9.45 23.62
P/S 4.02 3.33 3.33
P/B 4.90 4.98 4.90
Price to free cash flow 39.41 22.52 16.11
EV/EBITDA 13.35 7.01 13.35
EV/Sales 4.42 3.61 3.92
Earnings yield 4.23% 10.59% 3.00%
Free cash flow yield 2.54% 4.44% 4.47%

Profitability

Metric AZN NVO Drug Manufacturers General median
Gross margin 81.88% 80.73% 72.77%
Operating margin 22.77% 43.36% 18.90%
Net margin 17.02% 35.47% 8.27%
Free cash flow margin 10.21% 14.79% 17.25%
Return on equity 21.95% 60.84% 6.97%
Return on assets 9.15% 22.00% 2.76%
Return on invested capital 11.67% 28.67% 6.30%

Growth

Metric AZN NVO Drug Manufacturers General median
Revenue growth (TTM) 8.61% 13.15% 6.79%
EPS growth (last fiscal year) 45.43% 6.40% 21.81%
Revenue growth, 5-year CAGR 17.15% 19.20% 4.75%
Net income growth, 5-year CAGR 26.19% 19.16% 0.00%

Health

Metric AZN NVO Drug Manufacturers General median
Debt to equity 0.59 0.63 0.63
Current ratio 0.89 0.87 1.32
Net debt to EBITDA 1.13 0.65 1.15

Dividend

Metric AZN NVO Drug Manufacturers General median
Dividend yield 2.02% 4.65% 2.40%
Payout ratio 0.48 0.44 0.59

Size

Metric AZN NVO Drug Manufacturers General median
Market cap 246.25b 127.75b 121.70b

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