Contrasting Bayer Aktiengesellschaft (OTCMKTS:BAYRY) and Novo Nordisk A/S (NYSE:NVO)

Bayer Aktiengesellschaft (OTCMKTS:BAYRYGet Free Report) and Novo Nordisk A/S (NYSE:NVOGet Free Report) are both large-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Valuation & Earnings

This table compares Bayer Aktiengesellschaft 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
Bayer Aktiengesellschaft $50.44 billion 0.60 -$2.76 billion ($0.92) -8.34
Novo Nordisk A/S $42.12 billion 7.32 $14.64 billion $3.38 20.43

Novo Nordisk A/S has lower revenue, but higher earnings than Bayer Aktiengesellschaft. Bayer Aktiengesellschaft is trading at a lower price-to-earnings ratio than Novo Nordisk A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Bayer Aktiengesellschaft and Novo Nordisk A/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bayer Aktiengesellschaft 0 1 1 2 3.25
Novo Nordisk A/S 2 5 3 1 2.27

Novo Nordisk A/S has a consensus price target of $112.00, suggesting a potential upside of 62.20%. Given Novo Nordisk A/S’s higher probable upside, analysts clearly believe Novo Nordisk A/S is more favorable than Bayer Aktiengesellschaft.

Dividends

Bayer Aktiengesellschaft pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Novo Nordisk A/S pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Bayer Aktiengesellschaft pays out -2.2% of its earnings in the form of a dividend. Novo Nordisk A/S pays out 48.5% 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.

Institutional and 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.

Volatility & Risk

Bayer Aktiengesellschaft has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Bayer Aktiengesellschaft -7.26% 13.94% 4.09%
Novo Nordisk A/S 34.52% 80.94% 24.23%

Summary

Novo Nordisk A/S beats Bayer Aktiengesellschaft on 12 of the 17 factors compared between the two stocks.

About Bayer Aktiengesellschaft

(Get Free Report)

Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women’s health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health. This segment also provides breeding, propagation, and production/processing of seeds, including seed dressing. The company has a collaboration with Acuitas Therapeutics, Inc. to strengthen gene editing programs; Peking University in the area of basic pharmaceutical research; the Swiss Tropical and Public Health Institute in the development of the compound emodepside for the treatment of infection with soil-transmitted helminths; bit.bio Ltd. for the discovery and manufacture of regulatory T cells for use in creating therapeutics; Hologic, Inc. in the field of contrastenhanced-mammography solutions to improve diagnostic imaging for the detection of breast cancer; and Twist Bioscience Corporation centering around the research and development of antibody-based pharmaceuticals, as well as with CrossBay Medical Inc. It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers. The company has collaboration with Thermo Fisher Scientific. Bayer Aktiengesellschaft was founded in 1863 and is based in Leverkusen, Germany.

About Novo Nordisk A/S

(Get Free Report)

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.

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