NRx Pharmaceuticals (NASDAQ:NRXP – Get Free Report) and Novartis (NYSE:NVS – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares NRx Pharmaceuticals and Novartis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NRx Pharmaceuticals | -691.81% | N/A | -63.92% |
| Novartis | 23.29% | 38.56% | 14.47% |
Valuation & Earnings
This table compares NRx Pharmaceuticals and Novartis”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NRx Pharmaceuticals | $1.23 million | 100.33 | -$28.62 million | ($0.55) | -5.18 |
| Novartis | $54.53 billion | 5.03 | $13.98 billion | $6.63 | 21.67 |
Novartis has higher revenue and earnings than NRx Pharmaceuticals. NRx Pharmaceuticals is trading at a lower price-to-earnings ratio than Novartis, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
NRx Pharmaceuticals has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, Novartis has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for NRx Pharmaceuticals and Novartis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NRx Pharmaceuticals | 2 | 0 | 5 | 0 | 2.43 |
| Novartis | 2 | 12 | 6 | 0 | 2.20 |
NRx Pharmaceuticals currently has a consensus target price of $34.50, suggesting a potential upside of 1,110.53%. Novartis has a consensus target price of $145.60, suggesting a potential upside of 1.34%. Given NRx Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe NRx Pharmaceuticals is more favorable than Novartis.
Insider and Institutional Ownership
4.3% of NRx Pharmaceuticals shares are held by institutional investors. Comparatively, 13.1% of Novartis shares are held by institutional investors. 6.4% of NRx Pharmaceuticals shares are held by company insiders. Comparatively, 0.0% of Novartis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Novartis beats NRx Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About NRx Pharmaceuticals
NRx Pharmaceuticals, Inc., a clinical-stage bio-pharmaceutical company, develops novel therapeutics for the treatment of central nervous system disorders, including suicidal depression, post-traumatic stress disorder, and chronic pain. Its products include NRX-101 (D-cycloserine/Lurasidone), an oral, fixed dosed combination of D-cycloserine and lurasidone that earned food and drug administration-designated breakthrough therapy for suicidal treatment-resistant bipolar depression; and NRX-100 (ketamine), which has been awarded FDA fast track designation for the treatment of severe bipolar depression with acute suicidal ideation and behavior. The company has a partnership with Alvogen Inc. and Lotus Pharmaceutical Company; development and manufacturing agreement with Nephron Pharmaceuticals, Inc. and Alcami; license agreement with Apkarian Technologies; development and license agreement with Glytech; license agreement with Sarah Herzog Memorial Hospital. The company was founded in 2015 and is based in Wilmington, Delaware.
About Novartis
Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran, a therapy to reduce LDL cholesterol; and Dawn Health for the development and commercialization of Ekiva, a digital solution designed for people living with Paroxysmal Nocturnal Hemoglobinuria. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.
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