Novartis AG (NVS) vs Pfizer Inc. (PFE)

Novartis AG and Pfizer Inc. are both Drug Manufacturers General companies. Novartis AG is the larger, with a market value of $264.3B against $161.7B — 1.6× the size. Novartis AG trades at the lower P/E: 21.8× against 37.7×. Novartis AG grew revenue faster over the last twelve months: 2.73% against −0.21%. Novartis AG has the higher net margin (22.5% vs 6.80%) and the higher return on invested capital (13.1% vs 6.30%). Both pay a dividend; Pfizer Inc. yields more (6.18% vs 3.69%). Across the 23 metrics below, Novartis AG leads on 13 and Pfizer Inc. on 10.

Valuation

Metric NVS PFE Drug Manufacturers General median
P/E 21.84 37.71 24.72
P/S 4.89 2.56 3.35
P/B 6.61 1.91 5.00
Price to free cash flow 18.26 16.04 17.68
EV/EBITDA 14.04 10.53 13.91
EV/Sales 5.58 3.37 3.95
Earnings yield 4.58% 2.65% 2.92%
Free cash flow yield 5.48% 6.24% 4.42%

Profitability

Metric NVS PFE Drug Manufacturers General median
Gross margin 74.74% 73.18% 72.77%
Operating margin 30.17% 21.70% 18.90%
Net margin 22.50% 6.80% 8.27%
Free cash flow margin 26.77% 17.25% 17.25%
Return on equity 30.37% 4.97% 6.97%
Return on assets 11.27% 2.13% 2.76%
Return on invested capital 13.14% 6.30% 6.30%

Growth

Metric NVS PFE Drug Manufacturers General median
Revenue growth (TTM) 2.73% (0.21%) 6.79%
EPS growth (last fiscal year) 21.81% (3.55%) —
Revenue growth, 5-year CAGR 2.58% 8.48% 3.98%
Net income growth, 5-year CAGR 11.62% (3.23%) 0.42%

Health

Metric NVS PFE Drug Manufacturers General median
Debt to equity 1.12 0.74 0.63
Current ratio 0.86 1.27 1.32
Net debt to EBITDA 0.96 2.46 1.15

Dividend

Metric NVS PFE Drug Manufacturers General median
Dividend yield 3.69% 6.18% 3.57%
Payout ratio 0.97 0.43 0.53

Size

Metric NVS PFE Drug Manufacturers General median
Market cap 264.33b 161.70b 125.91b

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