GSK PLC Sponsored ADR (GSK) vs Novo Nordisk A/S (NVO)

GSK PLC Sponsored ADR and Novo Nordisk A/S are both Drug Manufacturers General companies. Novo Nordisk A/S is the larger, with a market value of $134.8B against $101.0B — 1.3× the size. Novo Nordisk A/S trades at the lower P/E: 9.9× against 16.7×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 6.90%. Novo Nordisk A/S has the higher net margin (35.5% vs 13.0%) and the higher return on invested capital (28.7% vs 9.61%). Both pay a dividend; Novo Nordisk A/S yields more (4.45% vs 3.60%). Across the 23 metrics below, Novo Nordisk A/S leads on 16 and GSK PLC Sponsored ADR on 7.

Valuation

Metric GSK NVO Drug Manufacturers General median
P/E 16.73 9.86 26.57
P/S 2.25 3.48 3.49
P/B 4.09 5.20 5.20
Price to free cash flow 11.44 23.51 21.34
EV/EBITDA 10.56 7.29 14.80
EV/Sales 2.87 3.75 4.09
Earnings yield 5.98% 10.14% 2.40%
Free cash flow yield 8.74% 4.25% 4.43%

Profitability

Metric GSK NVO Drug Manufacturers General median
Gross margin 72.64% 80.73% 73.01%
Operating margin 17.95% 43.36% 18.34%
Net margin 13.02% 35.47% 7.31%
Free cash flow margin 19.65% 14.79% 18.52%
Return on equity 25.48% 60.84% 5.80%
Return on assets 6.53% 22.00% 2.28%
Return on invested capital 9.61% 28.67% 6.26%

Growth

Metric GSK NVO Drug Manufacturers General median
Revenue growth (TTM) 6.90% 13.15% 6.72%
EPS growth (last fiscal year) 133.96% 6.40% 21.81%
Revenue growth, 5-year CAGR (0.32%) 19.20% 4.75%
Net income growth, 5-year CAGR 0.42% 19.16% 0.00%

Health

Metric GSK NVO Drug Manufacturers General median
Debt to equity 1.29 0.63 0.63
Current ratio 0.86 0.87 1.39
Net debt to EBITDA 1.39 0.65 1.15

Dividend

Metric GSK NVO Drug Manufacturers General median
Dividend yield 3.60% 4.45% 2.31%
Payout ratio 0.61 0.44 0.59

Size

Metric GSK NVO Drug Manufacturers General median
Market cap 101.04b 134.84b 131.21b

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