Novo Nordisk A/S (NYSE:NVO – Get Free Report) and Astellas Pharma (OTCMKTS:ALPMY – Get Free Report) are both large-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Analyst Recommendations
This is a summary of recent recommendations for Novo Nordisk A/S and Astellas Pharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novo Nordisk A/S | 5 | 16 | 5 | 0 | 2.00 |
| Astellas Pharma | 0 | 3 | 0 | 1 | 2.50 |
Novo Nordisk A/S presently has a consensus target price of $59.44, indicating a potential upside of 51.60%. Given Novo Nordisk A/S’s higher probable upside, analysts clearly believe Novo Nordisk A/S is more favorable than Astellas Pharma.
Valuation & Earnings
This table compares Novo Nordisk A/S and Astellas Pharma”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Novo Nordisk A/S | $46.80 billion | 3.74 | $15.51 billion | $4.09 | 9.59 |
| Astellas Pharma | $14.21 billion | 2.04 | $1.83 billion | $1.31 | 12.21 |
Novo Nordisk A/S has higher revenue and earnings than Astellas Pharma. Novo Nordisk A/S is trading at a lower price-to-earnings ratio than Astellas Pharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Novo Nordisk A/S and Astellas Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Novo Nordisk A/S | 35.36% | 58.61% | 20.91% |
| Astellas Pharma | 16.01% | 25.79% | 12.87% |
Dividends
Novo Nordisk A/S pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. Astellas Pharma pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. Novo Nordisk A/S pays out 20.0% of its earnings in the form of a dividend. Astellas Pharma pays out 22.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Novo Nordisk A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Novo Nordisk A/S has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Astellas Pharma has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.
Institutional & Insider Ownership
11.5% of Novo Nordisk A/S shares are owned by institutional investors. 0.1% of Novo Nordisk A/S shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Novo Nordisk A/S beats Astellas Pharma on 14 of the 17 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 Astellas Pharma
Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.
Receive News & Ratings for Novo Nordisk A/S Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Novo Nordisk A/S and related companies with MarketBeat.com's FREE daily email newsletter.
