Novo Nordisk A/S (NYSE:NVO – Get Free Report) and Innoviva (NASDAQ:INVA – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
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% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Novo Nordisk A/S and Innoviva, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novo Nordisk A/S | 1 | 11 | 4 | 0 | 2.19 |
| Innoviva | 0 | 0 | 4 | 0 | 3.00 |
Volatility & Risk
Novo Nordisk A/S has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Earnings and 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 | 5.76 | $14.64 billion | $3.64 | 14.93 |
| Innoviva | $358.71 million | 3.49 | $23.39 million | $0.31 | 64.10 |
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.
Insider & Institutional 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 insiders. Comparatively, 2.3% of Innoviva shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Novo Nordisk A/S beats Innoviva on 8 of the 13 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.
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