Analyzing Novo Nordisk A/S (NYSE:NVO) and Innoviva (NASDAQ:INVA)

Novo Nordisk A/S (NYSE:NVO) and Innoviva (NASDAQ:INVA) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

11.5% of Novo Nordisk A/S shares are owned by institutional investors. Comparatively, 99.1% of Innoviva shares are owned by institutional investors. 0.1% of Novo Nordisk A/S shares are owned by company insiders. Comparatively, 2.3% of Innoviva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Novo Nordisk A/S has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Novo Nordisk A/S and Innoviva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novo Nordisk A/S	35.60%	78.64%	24.51%
Innoviva	10.44%	18.67%	9.92%

Earnings & Valuation

This table compares Novo Nordisk A/S and Innoviva”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novo Nordisk A/S	$42.12 billion	5.99	$14.64 billion	$3.64	15.52
Innoviva	$358.71 million	3.59	$23.39 million	$0.31	65.90

Novo Nordisk A/S has higher revenue and earnings than Innoviva. Novo Nordisk A/S is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Novo Nordisk A/S and Innoviva, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novo Nordisk A/S	1	12	3	0	2.13
Innoviva	0	0	4	0	3.00

Novo Nordisk A/S currently has a consensus price target of $81.00, indicating a potential upside of 43.35%. Innoviva has a consensus price target of $42.75, indicating a potential upside of 109.25%. Given Innoviva’s stronger consensus rating and higher possible upside, analysts plainly believe Innoviva is more favorable than Novo Nordisk A/S.

Summary

Novo Nordisk A/S beats Innoviva on 8 of the 14 factors compared between the two stocks.

About Novo Nordisk A/S

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with Aspen Pharmaceuticals to produce insulin products; and with Korro Bio, Inc. for the discovery and development of new genetic medicines to treat cardiometabolic diseases. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.

About Innoviva

Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.