Novo Nordisk A/S (NVO) and Its Rivals Financial Results Comparison

As Biotechnology company, Novo Nordisk A/S (NYSE:NVO) is competing with its peers based on the analyst recommendations, institutional ownership, profitability, risk, dividends, earnings and valuation.

Institutional and Insider Ownership

Novo Nordisk A/S has 9.1% of its shares owned by institutional investors versus an average of 50.88% institutional ownership for its peers. 26.4% of Novo Nordisk A/S shares are owned by company insiders. Comparatively, 8.18% of all Biotechnology companies shares are owned by company insiders.

Profitability

Table 1 has Novo Nordisk A/S and its peers’ return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
Novo Nordisk A/S 0.00% 80.50% 38.30%
Industry Average 1,464.25% 88.44% 21.62%

Valuation and Earnings

In next table we are comparing Novo Nordisk A/S and its peers’ gross revenue, valuation and net income.

Net Income Gross Revenue Price/Earnings Ratio
Novo Nordisk A/S N/A N/A 19.15
Industry Average 34.08M 2.33M 58.78

With presently lower P/E ratio Novo Nordisk A/S is more affordable than its peers.

Analyst Recommendations

Table 3 shows summary of current ratings for Novo Nordisk A/S and its peers.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Novo Nordisk A/S 1 3 3 2.43
Industry Average 1.17 1.78 2.01 2.68

$285 is the average target price of Novo Nordisk A/S, with a potential upside of 479.86%. The potential upside of the peers is 173.20%. Based on the results given earlier the analysts’ view is that Novo Nordisk A/S’s peers are looking more favorable than the company itself.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Novo Nordisk A/S and its peers.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Novo Nordisk A/S -1.44% 3.17% -5.12% 2.5% -10.81% -14.38%
Industry Average 9.08% 15.16% 32.92% 41.89% 74.81% 65.27%

For the past year Novo Nordisk A/S had bearish trend while Novo Nordisk A/S’s peers had bullish trend.

Liquidity

The Current Ratio and a Quick Ratio of Novo Nordisk A/S are 1.1 and 0.8. Competitively, Novo Nordisk A/S’s peers have 7.68 and 7.52 for Current and Quick Ratio. Novo Nordisk A/S’s peers have better ability to pay short and long-term obligations than Novo Nordisk A/S.

Risk & Volatility

Novo Nordisk A/S has a beta of 0.75 and its 25.00% less volatile than Standard & Poor’s 500. Competitively, Novo Nordisk A/S’s peers’ beta is 1.70 which is 70.08% more volatile than Standard & Poor’s 500.

Dividends

The annual dividend that Novo Nordisk A/S pay is $1.23 per share with a dividend yield of 2.48%. On the other side Novo Nordisk A/S’s peers have dividend yield of 3.06%.

Summary

Novo Nordisk A/S’s peers beat Novo Nordisk A/S on 6 of the 6 factors.

Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity Care, and Biopharmaceuticals. The Diabetes and Obesity Care segment provides insulins, GLP-1 analog, and oral anti-diabetic drugs, as well as other protein related products comprising glucagon, protein related delivery systems, and needles. The Biopharmaceuticals segment offers products in the areas of haemophilia care, growth hormone therapy, and hormone replacement therapy. The company markets and distributes its products through distributors and independent agents. Novo Nordisk A/S was founded in 1925 and is headquartered in Bagsvaerd, Denmark.