Contrasting Novozymes A/S (OTCMKTS:NVZMY) and Immunovant (NASDAQ:IMVT)

Novozymes A/S (OTCMKTS:NVZMY – Get Rating) and Immunovant (NASDAQ:IMVT – Get Rating) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for Novozymes A/S and Immunovant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novozymes A/S	2	5	1	0	1.88
Immunovant	0	1	10	0	2.91

Novozymes A/S currently has a consensus target price of $370.00, suggesting a potential upside of 603.29%. Immunovant has a consensus target price of $23.54, suggesting a potential upside of 10.98%. Given Novozymes A/S’s higher probable upside, research analysts clearly believe Novozymes A/S is more favorable than Immunovant.

Earnings & Valuation

This table compares Novozymes A/S and Immunovant’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novozymes A/S	$2.38 billion	5.03	$500.53 million	N/A	N/A
Immunovant	N/A	N/A	-$156.73 million	($1.66)	-12.78

Novozymes A/S has higher revenue and earnings than Immunovant.

Profitability

This table compares Novozymes A/S and Immunovant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novozymes A/S	20.08%	26.96%	13.00%
Immunovant	N/A	-46.30%	-42.76%

Risk & Volatility

Novozymes A/S has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Immunovant has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Novozymes A/S shares are owned by institutional investors. Comparatively, 32.8% of Immunovant shares are owned by institutional investors. 3.0% of Immunovant shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Novozymes A/S beats Immunovant on 6 of the 11 factors compared between the two stocks.

About Novozymes A/S

(Get Rating)

Novozymes A/S engages in the research and development of biotechnology solutions, which produces industrial enzymes and microorganisms. Its business areas include agriculture, bioenergy, biopharma, food and beverage, household care, leather, pulp and paper, textile and wastewater solutions. The company was founded in 2000 and is headquartered in Copenhagen, Denmark.

About Immunovant

(Get Rating)

Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. It develops batoclimab, a novel fully human monoclonal antibody that selectively binds to and inhibits the neonatal fragment crystallizable receptor, which is in Phase IIa clinical trials for the treatment of myasthenia gravis and thyroid eye disease, as well as completed initiation of Phase II clinical trials for the treatment of warm autoimmune hemolytic anemia. The company was incorporated in 2018 is headquartered in New York, New York. Immunovant, Inc. is a subsidiary of Roivant Sciences Ltd.