Contrasting Novozymes (NVZMY) & Its Peers

Novozymes (OTCMKTS: NVZMY) is one of 89 publicly-traded companies in the “Biological products, except diagnostic” industry, but how does it contrast to its peers? We will compare Novozymes to related businesses based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Novozymes and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novozymes 21.50% 28.92% 17.21%
Novozymes Competitors -5,580.57% -62.17% -25.06%

Institutional & Insider Ownership

0.2% of Novozymes shares are owned by institutional investors. Comparatively, 47.4% of shares of all “Biological products, except diagnostic” companies are owned by institutional investors. 16.5% of shares of all “Biological products, except diagnostic” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Novozymes and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novozymes 1 1 0 0 1.50
Novozymes Competitors 454 1688 4517 148 2.64

Novozymes currently has a consensus target price of $54.97, suggesting a potential upside of 15.79%. As a group, “Biological products, except diagnostic” companies have a potential upside of 22.32%. Given Novozymes’ peers stronger consensus rating and higher probable upside, analysts plainly believe Novozymes has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Novozymes and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Novozymes $2.21 billion $473.62 million 29.86
Novozymes Competitors $1.05 billion $96.36 million -0.70

Novozymes has higher revenue and earnings than its peers. Novozymes is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Novozymes has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Novozymes’ peers have a beta of 1.59, meaning that their average stock price is 59% more volatile than the S&P 500.

Dividends

Novozymes pays an annual dividend of $0.49 per share and has a dividend yield of 1.0%. Novozymes pays out 30.8% of its earnings in the form of a dividend. As a group, “Biological products, except diagnostic” companies pay a dividend yield of 2.1% and pay out 35.7% of their earnings in the form of a dividend.

Summary

Novozymes peers beat Novozymes on 8 of the 15 factors compared.

About Novozymes

Novozymes A/S produces and sells industrial enzymes and microorganisms worldwide. It operates in three divisions: Household Care & Technical, Agriculture & Bioenergy, and Food & Beverages. The company offers enzymes for use in household care products, such as laundry detergents, hand and automatic dishwashing soaps, and professional cleaning products. It also provides enzymes for baking applications, including freshness, product appearance, dough improvement, etc.; and brewing applications comprising fermentation control, separation and filtration, etc., as well as for use in lactose-free dairy, trans fats removal, etc. in the food and beverages industry. In addition, the company offers enzymes and microorganisms for use in the production of cellulosic ethanol, starch-based ethanol, enzymatic biodiesel, and sugarcane ethanol in the bioenergy industry; and feed enzymes for use in animal feed, probiotics for animal health applications, microbials for aquaculture applications, and other enzymes and microorganisms for plant health and crop yield applications in the agriculture and feed industry. Further, it provides enzymes and microorganisms for use in textile processing, pulp and paper production, leather preparation, pharmaceuticals, and wastewater treatment solutions. The company has a strategic collaboration with Boehringer Ingelheim Animal Health for research and development, production, marketing, and sale of a portfolio of probiotic products. Novozymes A/S was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

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