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.
Novartis (NYSE:NVS) and Eli Lilly and Company (NYSE:LLY) are both large-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, dividends, community ranking, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Novartis has a net margin of 31.33% compared to Eli Lilly and Company's net margin of 17.08%. Eli Lilly and Company's return on equity of 56.98% beat Novartis' return on equity.
Novartis pays an annual dividend of $2.43 per share and has a dividend yield of 2.4%. Eli Lilly and Company pays an annual dividend of $5.20 per share and has a dividend yield of 0.6%. Novartis pays out 32.8% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Novartis presently has a consensus target price of $115.00, indicating a potential upside of 15.71%. Eli Lilly and Company has a consensus target price of $769.53, indicating a potential downside of 5.32%. Given Novartis' higher possible upside, equities research analysts clearly believe Novartis is more favorable than Eli Lilly and Company.
In the previous week, Eli Lilly and Company had 41 more articles in the media than Novartis. MarketBeat recorded 57 mentions for Eli Lilly and Company and 16 mentions for Novartis. Novartis' average media sentiment score of 0.63 beat Eli Lilly and Company's score of 0.56 indicating that Novartis is being referred to more favorably in the media.
13.1% of Novartis shares are held by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are held by institutional investors. 0.0% of Novartis shares are held by insiders. Comparatively, 0.1% of Eli Lilly and Company shares are held 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.
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 beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Eli Lilly and Company has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.
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.
Summary
Novartis and Eli Lilly and Company tied by winning 10 of the 20 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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