Novo Nordisk A/S (NYSE:NVO – Get Free Report) and Pasithea Therapeutics (NASDAQ:KTTA – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Institutional and Insider Ownership
11.5% of Novo Nordisk A/S shares are owned by institutional investors. Comparatively, 23.9% of Pasithea Therapeutics shares are owned by institutional investors. 0.1% of Novo Nordisk A/S shares are owned by insiders. Comparatively, 16.3% of Pasithea Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Novo Nordisk A/S and Pasithea Therapeutics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Novo Nordisk A/S | 34.86% | 87.43% | 28.01% |
Pasithea Therapeutics | N/A | -74.56% | -67.62% |
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Novo Nordisk A/S | $258.00 billion | 2.05 | $12.15 billion | $2.90 | 40.62 |
Pasithea Therapeutics | $20,000.00 | 272.22 | -$15.96 million | N/A | N/A |
Novo Nordisk A/S has higher revenue and earnings than Pasithea Therapeutics.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Novo Nordisk A/S and Pasithea Therapeutics, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Novo Nordisk A/S | 0 | 1 | 6 | 0 | 2.86 |
Pasithea Therapeutics | 0 | 0 | 0 | 0 | N/A |
Novo Nordisk A/S presently has a consensus target price of $145.17, indicating a potential upside of 23.22%. Given Novo Nordisk A/S’s higher possible upside, equities analysts clearly believe Novo Nordisk A/S is more favorable than Pasithea Therapeutics.
Volatility & Risk
Novo Nordisk A/S has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Pasithea Therapeutics has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Summary
Novo Nordisk A/S beats Pasithea Therapeutics on 7 of the 11 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. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
About Pasithea Therapeutics
Pasithea Therapeutics Corp., a biotechnology company, engages in discovery, research, and development of treatments for central nervous system disorders, RASopathies, and other diseases. Its lead product candidate PAS-004, a next-generation macrocyclic mitogen-activated protein kinase, or MEK inhibitor for use in the treatment of a range of RASopathies, including neurofibromatosis type 1 oncology indications. The company intends to develop PAS-003, to treat amyotrophic lateral sclerosis; and PAS-001, to treat schizophrenia. Pasithea Therapeutics Corp. was incorporated in 2020 and is headquartered in Miami Beach, Florida.
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