NVS vs. LLY, NVO, JNJ, MRK, ABBV, AZN, ABT, PFE, SNY, and VRTX
Should you be buying Novartis stock or one of its competitors? The main competitors of Novartis include Eli Lilly and Company (LLY), Novo Nordisk A/S (NVO), Johnson & Johnson (JNJ), Merck & Co., Inc. (MRK), AbbVie (ABBV), AstraZeneca (AZN), Abbott Laboratories (ABT), Pfizer (PFE), Sanofi (SNY), and Vertex Pharmaceuticals (VRTX). These companies are all part of the "pharmaceutical preparations" industry.
Eli Lilly and Company (NYSE:LLY) and Novartis (NYSE:NVS) are both large-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their community ranking, institutional ownership, analyst recommendations, earnings, valuation, profitability, risk, dividends and media sentiment.
Eli Lilly and Company received 646 more outperform votes than Novartis when rated by MarketBeat users. Likewise, 70.07% of users gave Eli Lilly and Company an outperform vote while only 61.42% of users gave Novartis an outperform vote.
Novartis has a net margin of 31.33% compared to Novartis' net margin of 17.08%. Novartis' return on equity of 56.98% beat Eli Lilly and Company's return on equity.
Novartis has higher revenue and earnings than Eli Lilly and Company. Novartis is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.
In the previous week, Eli Lilly and Company had 38 more articles in the media than Novartis. MarketBeat recorded 55 mentions for Eli Lilly and Company and 17 mentions for Novartis. Eli Lilly and Company's average media sentiment score of 0.65 beat Novartis' score of 0.55 indicating that Novartis is being referred to more favorably in the news media.
82.5% of Eli Lilly and Company shares are owned by institutional investors. Comparatively, 13.1% of Novartis shares are owned by institutional investors. 0.1% of Eli Lilly and Company shares are owned by company insiders. Comparatively, 0.0% of Novartis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Eli Lilly and Company has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Novartis has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Eli Lilly and Company presently has a consensus price target of $769.53, suggesting a potential downside of 4.75%. Novartis has a consensus price target of $115.00, suggesting a potential upside of 15.37%. Given Eli Lilly and Company's higher probable upside, analysts clearly believe Novartis is more favorable than Eli Lilly and Company.
Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Novartis pays an annual dividend of $2.43 per share and has a dividend yield of 2.4%. Eli Lilly and Company pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Novartis pays out 32.8% of its earnings in the form of a dividend. Eli Lilly and Company has raised its dividend for 10 consecutive years and Novartis has raised its dividend for 4 consecutive years. Novartis is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Eli Lilly and Company beats Novartis on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NVS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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