Gilead Sciences, Inc. (GILD) vs Novo Nordisk A/S (NVO)

Gilead Sciences, Inc. and Novo Nordisk A/S are both Drug Manufacturers General companies. Gilead Sciences, Inc. is the larger, with a market value of $195.1B against $131.2B — 1.5× the size. Gilead Sciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Novo Nordisk A/S trades at 9.5×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 5.52%. Novo Nordisk A/S has the higher net margin (35.5% vs −10.6%) and the higher return on invested capital (28.7% vs −4.48%). Both pay a dividend; Novo Nordisk A/S yields more (4.63% vs 2.08%). Across the 22 metrics below, Novo Nordisk A/S leads on 16 and Gilead Sciences, Inc. on 6.

Valuation

Metric GILD NVO Drug Manufacturers General median
P/E n/m 9.49 24.54
P/S 6.37 3.35 3.39
P/B 16.53 5.00 5.00
Price to free cash flow 15.00 22.63 16.55
EV/EBITDA 829.05 7.04 13.82
EV/Sales 7.13 3.62 4.03
Earnings yield (1.66%) 10.53% 2.98%
Free cash flow yield 6.67% 4.42% 4.46%

Profitability

Metric GILD NVO Drug Manufacturers General median
Gross margin 79.59% 80.73% 72.77%
Operating margin (8.20%) 43.36% 18.77%
Net margin (10.64%) 35.47% 8.27%
Free cash flow margin 42.50% 14.79% 17.18%
Return on equity (20.68%) 60.84% 5.87%
Return on assets (6.17%) 22.00% 2.57%
Return on invested capital (4.48%) 28.67% 6.11%

Growth

Metric GILD NVO Drug Manufacturers General median
Revenue growth (TTM) 5.52% 13.15% 6.66%
EPS growth (last fiscal year) 1,684.21% 6.40% 21.81%
Revenue growth, 5-year CAGR 3.58% 19.20% 4.75%
Net income growth, 5-year CAGR 133.35% 19.16% 0.00%

Health

Metric GILD NVO Drug Manufacturers General median
Debt to equity 2.23 0.63 0.63
Current ratio 1.27 0.87 1.32
Net debt to EBITDA 1.35 0.65 1.15

Dividend

Metric GILD NVO Drug Manufacturers General median
Dividend yield 2.08% 4.63% 2.33%
Payout ratio — 0.44 0.59

Size

Metric GILD NVO Drug Manufacturers General median
Market cap 195.13b 131.23b 123.73b

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