Comparing Novo Nordisk A/S (NYSE:NVO) and Mallinckrodt (OTCMKTS:MNKKQ)

Mallinckrodt (OTCMKTS:MNKKQ) and Novo Nordisk A/S (NYSE:NVO) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Valuation and Earnings

This table compares Mallinckrodt and Novo Nordisk A/S’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mallinckrodt	$1.91 billion	0.00	-$911.20 million	N/A	N/A
Novo Nordisk A/S	$33.71 billion	16.87	$12.15 billion	$2.90	43.69

Novo Nordisk A/S has higher revenue and earnings than Mallinckrodt.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mallinckrodt and Novo Nordisk A/S, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mallinckrodt	0	0	0	0	N/A
Novo Nordisk A/S	0	2	6	0	2.75

Novo Nordisk A/S has a consensus price target of $133.60, suggesting a potential upside of 5.44%. Given Novo Nordisk A/S’s higher probable upside, analysts plainly believe Novo Nordisk A/S is more favorable than Mallinckrodt.

Insider and Institutional Ownership

11.5% of Novo Nordisk A/S shares are held by institutional investors. 3.6% of Mallinckrodt shares are held by insiders. Comparatively, 0.1% of Novo Nordisk A/S shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mallinckrodt and Novo Nordisk A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mallinckrodt	-56.33%	-59.80%	-16.98%
Novo Nordisk A/S	36.56%	91.70%	29.86%

Summary

Novo Nordisk A/S beats Mallinckrodt on 9 of the 10 factors compared between the two stocks.

About Mallinckrodt

Mallinckrodt plc develops, manufactures, markets, and distributes specialty pharmaceutical products and therapies in the United States, Europe, the Middle East, Africa, and internationally. It operates in two segments, Specialty Brands and Specialty Generics. The company markets branded pharmaceutical products for autoimmune and rare diseases in the areas of neurology, rheumatology, nephrology, ophthalmology, pulmonology, and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; cultured skin substitutes; and gastrointestinal products. It offers Acthar Gel, a repository corticotropin injection for rheumatoid arthritis, infantile spasms, systemic lupus erythematosus, multiple sclerosis, systemic dermatomyositis, symptomatic sarcoidosis, severe acute and chronic allergic, and inflammatory diseases; INOmax, a vasodilator to enhance oxygenation and reduce the need for extracorporeal membrane oxygenation; Therakos photopheresis, an immunotherapy treatment platform; Amitiza for constipation; and StrataGraft for the treatment of adults with deep partial-thickness burns. The company is also developing Terlipressin for the treatment of hepatorenal syndrome; and SLN 501 is a ribonucleic acid silencing therap. In addition, it provides specialty generic drugs and active pharmaceutical ingredients. The company markets its branded products to physicians, respiratory therapists, pharmacists, pharmacy buyers, hospital procurement departments, ambulatory surgical centers, and specialty pharmacies. Mallinckrodt plc has collaboration with Silence Therapeutics plc to develop and commercialize ribonucleic acid interference drug targets. The company was founded in 1867 and is based in Dublin, Ireland. On October 12, 2020, Mallinckrodt plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

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. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.