Bristol Myers Squibb Company (BMY) vs Novartis AG (NVS)

Bristol Myers Squibb Company and Novartis AG are both Drug Manufacturers General companies. Novartis AG is the larger, with a market value of $264.3B against $125.9B — 2.1× the size. Bristol Myers Squibb Company trades at the lower P/E: 13.8× against 21.8×. Bristol Myers Squibb Company grew revenue faster over the last twelve months: 3.11% against 2.73%. Novartis AG has the higher net margin (22.5% vs 18.9%) and the lower return on invested capital (13.1% vs 13.7%). Both pay a dividend; Bristol Myers Squibb Company yields more (5.04% vs 3.69%). Across the 23 metrics below, Bristol Myers Squibb Company leads on 14 and Novartis AG on 9.

Valuation

Metric BMY NVS Drug Manufacturers General median
P/E 13.85 21.84 24.72
P/S 2.61 4.89 3.35
P/B 5.75 6.61 5.00
Price to free cash flow 11.22 18.26 17.68
EV/EBITDA 10.63 14.04 13.91
EV/Sales 3.26 5.58 3.95
Earnings yield 7.22% 4.58% 2.92%
Free cash flow yield 8.91% 5.48% 4.42%

Profitability

Metric BMY NVS Drug Manufacturers General median
Gross margin 70.16% 74.74% 72.77%
Operating margin 24.22% 30.17% 18.90%
Net margin 18.87% 22.50% 8.27%
Free cash flow margin 23.26% 26.77% 17.25%
Return on equity 46.63% 30.37% 6.97%
Return on assets 10.18% 11.27% 2.76%
Return on invested capital 13.69% 13.14% 6.30%

Growth

Metric BMY NVS Drug Manufacturers General median
Revenue growth (TTM) 3.11% 2.73% 6.79%
EPS growth (last fiscal year) 178.46% 21.81% —
Revenue growth, 5-year CAGR 2.54% 2.58% 3.98%
Net income growth, 5-year CAGR 0.00% 11.62% 0.42%

Health

Metric BMY NVS Drug Manufacturers General median
Debt to equity 1.93 1.12 0.63
Current ratio 1.53 0.86 1.32
Net debt to EBITDA 2.58 0.96 1.15

Dividend

Metric BMY NVS Drug Manufacturers General median
Dividend yield 5.04% 3.69% 3.57%
Payout ratio 0.60 0.97 0.53

Size

Metric BMY NVS Drug Manufacturers General median
Market cap 125.91b 264.33b 125.91b

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