Comparing of Novo Nordisk A/S (NVO) and Its Peers

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

Insider and Institutional Ownership

Novo Nordisk A/S has 9.4% of its shares owned by institutional investors versus an average of 52.39% institutional ownership for its competitors. 26.4% of Novo Nordisk A/S shares are owned by company insiders. Comparatively, 8.89% of all Biotechnology companies shares are owned by company insiders.

Profitability

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

Net Margins Return on Equity Return on Assets
Novo Nordisk A/S 0.00% 80.20% 37.70%
Industry Average 468.58% 80.16% 25.47%

Valuation and Earnings

The following data compares Novo Nordisk A/S and its competitors’ gross revenue, net income and valuation.

Net Income Gross Revenue Price/Earnings Ratio
Novo Nordisk A/S N/A N/A 20.27
Industry Average 14.75M 3.15M 89.01

The business has a lower price-to-earnings ratio which is currently more affordable in compare to its competitors.

Analyst Ratings

Table 3 provides summary of recent ratings for Novo Nordisk A/S and its competitors.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Novo Nordisk A/S 0 3 3 2.50
Industry Average 1.28 2.04 2.89 2.79

$285 is the average target price of Novo Nordisk A/S, with a potential upside of 464.36%. As a group, Biotechnology companies have a potential upside of 137.44%. Given Novo Nordisk A/S’s competitors higher probable upside, analysts clearly believe Novo Nordisk A/S has less favorable growth aspects than its competitors.

Performance

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

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Novo Nordisk A/S -0.51% 4.59% 6.98% -1.52% -2.11% 6.75%
Industry Average 7.88% 20.03% 31.47% 42.06% 73.21% 38.48%

For the past year Novo Nordisk A/S has weaker performance than Novo Nordisk A/S’s rivals.

Liquidity

Novo Nordisk A/S has a Current Ratio of 1.1 and a Quick Ratio of 0.8. Competitively, Novo Nordisk A/S’s rivals Current Ratio is 7.48 and has 7.37 Quick Ratio. Novo Nordisk A/S’s rivals 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 0.59 and its 41.00% less volatile than Standard & Poor’s 500. Competitively, Novo Nordisk A/S’s competitors are 90.82% more volatile than Standard & Poor’s 500, because of the 1.91 beta.

Dividends

The annual dividend that Novo Nordisk A/S pay is $1.23 per share with a dividend yield of 2.44%. On the other side Novo Nordisk A/S’s rivals have dividend yield of 5.15%.

Summary

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

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.