Novartis AG (NVS) vs Sanofi (SNY)

Novartis AG and Sanofi are both Drug Manufacturers General companies. Novartis AG is the larger, with a market value of $262.0B against $95.9B — 2.7× the size. Sanofi trades at the lower P/E: 21.0× against 21.6×. Sanofi grew revenue faster over the last twelve months: 21.3% against 2.73%. Novartis AG has the higher net margin (22.5% vs 8.22%) and the higher return on invested capital (13.1% vs 6.58%). Both pay a dividend; Sanofi yields more (6.05% vs 3.30%). Across the 23 metrics below, Sanofi leads on 15 and Novartis AG on 8.

Valuation

Metric NVS SNY Drug Manufacturers General median
P/E 21.58 20.98 23.62
P/S 4.83 1.68 3.33
P/B 6.53 1.19 4.90
Price to free cash flow 18.04 6.59 16.11
EV/EBITDA 13.89 10.95 13.35
EV/Sales 5.53 2.00 3.92
Earnings yield 4.63% 4.77% 3.00%
Free cash flow yield 5.54% 15.16% 4.47%

Profitability

Metric NVS SNY Drug Manufacturers General median
Gross margin 74.74% 72.78% 72.77%
Operating margin 30.17% 18.24% 18.90%
Net margin 22.50% 8.22% 8.27%
Free cash flow margin 26.77% 25.53% 17.25%
Return on equity 30.37% 5.87% 6.97%
Return on assets 11.27% 3.21% 2.76%
Return on invested capital 13.14% 6.58% 6.30%

Growth

Metric NVS SNY Drug Manufacturers General median
Revenue growth (TTM) 2.73% 21.30% 6.79%
EPS growth (last fiscal year) 21.81% 45.97% 21.81%
Revenue growth, 5-year CAGR 2.58% 4.37% 4.75%
Net income growth, 5-year CAGR 11.62% (8.87%) 0.00%

Health

Metric NVS SNY Drug Manufacturers General median
Debt to equity 1.12 0.31 0.63
Current ratio 0.86 0.99 1.32
Net debt to EBITDA 0.96 0.76 1.15

Dividend

Metric NVS SNY Drug Manufacturers General median
Dividend yield 3.30% 6.05% 2.40%
Payout ratio 0.72 1.27 0.59

Size

Metric NVS SNY Drug Manufacturers General median
Market cap 261.97b 95.89b 121.70b

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