Novo Nordisk A/S (NVO) vs Novartis AG (NVS)

Novo Nordisk A/S and Novartis AG are both Drug Manufacturers General companies. Novartis AG is the larger, with a market value of $264.3B against $129.3B — 2.0× the size. Novo Nordisk A/S trades at the lower P/E: 9.5× against 21.8×. Novo Nordisk A/S grew revenue faster over the last twelve months: 13.2% against 2.73%. Novo Nordisk A/S has the higher net margin (35.5% vs 22.5%) and the higher return on invested capital (28.7% vs 13.1%). Both pay a dividend; Novartis AG yields more (3.69% vs 1.36%). Across the 23 metrics below, Novo Nordisk A/S leads on 18 and Novartis AG on 5.

Valuation

Metric NVO NVS Drug Manufacturers General median
P/E 9.49 21.84 24.72
P/S 3.34 4.89 3.35
P/B 5.00 6.61 5.00
Price to free cash flow 22.61 18.26 17.68
EV/EBITDA 7.04 14.04 13.91
EV/Sales 3.62 5.58 3.95
Earnings yield 10.54% 4.58% 2.92%
Free cash flow yield 4.42% 5.48% 4.42%

Profitability

Metric NVO NVS Drug Manufacturers General median
Gross margin 80.73% 74.74% 72.77%
Operating margin 43.36% 30.17% 18.90%
Net margin 35.47% 22.50% 8.27%
Free cash flow margin 14.79% 26.77% 17.25%
Return on equity 60.84% 30.37% 6.97%
Return on assets 22.00% 11.27% 2.76%
Return on invested capital 28.67% 13.14% 6.30%

Growth

Metric NVO NVS Drug Manufacturers General median
Revenue growth (TTM) 13.15% 2.73% 6.79%
EPS growth (last fiscal year) 6.40% 21.81% —
Revenue growth, 5-year CAGR 19.20% 2.58% 3.98%
Net income growth, 5-year CAGR 19.16% 11.62% 0.42%

Health

Metric NVO NVS Drug Manufacturers General median
Debt to equity 0.63 1.12 0.63
Current ratio 0.87 0.86 1.32
Net debt to EBITDA 0.65 0.96 1.15

Dividend

Metric NVO NVS Drug Manufacturers General median
Dividend yield 1.36% 3.69% 3.57%
Payout ratio 0.41 0.97 0.53

Size

Metric NVO NVS Drug Manufacturers General median
Market cap 129.28b 264.33b 125.91b

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