AstraZeneca PLC (AZN) vs Novartis AG (NVS)

AstraZeneca PLC and Novartis AG are both Drug Manufacturers General companies. AstraZeneca PLC and Novartis AG are of similar size ($264.3B and $257.8B). Novartis AG trades at the lower P/E: 21.8× against 24.7×. AstraZeneca PLC grew revenue faster over the last twelve months: 8.61% against 2.73%. Novartis AG has the higher net margin (22.5% vs 17.0%) and the higher return on invested capital (13.1% vs 11.7%). Both pay a dividend; Novartis AG yields more (3.69% vs 2.49%). Across the 23 metrics below, Novartis AG leads on 12 and AstraZeneca PLC on 11.

Valuation

Metric AZN NVS Drug Manufacturers General median
P/E 24.72 21.84 24.72
P/S 4.21 4.89 3.35
P/B 5.13 6.61 5.00
Price to free cash flow 41.24 18.26 17.68
EV/EBITDA 13.91 14.04 13.91
EV/Sales 4.61 5.58 3.95
Earnings yield 4.05% 4.58% 2.92%
Free cash flow yield 2.42% 5.48% 4.42%

Profitability

Metric AZN NVS Drug Manufacturers General median
Gross margin 81.88% 74.74% 72.77%
Operating margin 22.77% 30.17% 18.90%
Net margin 17.02% 22.50% 8.27%
Free cash flow margin 10.21% 26.77% 17.25%
Return on equity 21.95% 30.37% 6.97%
Return on assets 9.15% 11.27% 2.76%
Return on invested capital 11.67% 13.14% 6.30%

Growth

Metric AZN NVS Drug Manufacturers General median
Revenue growth (TTM) 8.61% 2.73% 6.79%
EPS growth (last fiscal year) 45.43% 21.81% —
Revenue growth, 5-year CAGR 17.15% 2.58% 3.98%
Net income growth, 5-year CAGR 26.19% 11.62% 0.42%

Health

Metric AZN NVS Drug Manufacturers General median
Debt to equity 0.59 1.12 0.63
Current ratio 0.89 0.86 1.32
Net debt to EBITDA 1.13 0.96 1.15

Dividend

Metric AZN NVS Drug Manufacturers General median
Dividend yield 2.49% 3.69% 3.57%
Payout ratio 0.73 0.97 0.53

Size

Metric AZN NVS Drug Manufacturers General median
Market cap 257.79b 264.33b 125.91b

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