Novartis AG (NYSE: NVS) is one of 104 public companies in the “Pharmaceuticals” industry, but how does it compare to its rivals? We will compare Novartis AG to similar companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Novartis AG and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novartis AG 13.73% 15.77% 8.46%
Novartis AG Competitors -2,400.36% -62.97% -7.48%

Institutional & Insider Ownership

11.0% of Novartis AG shares are owned by institutional investors. Comparatively, 43.3% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.0% of Novartis AG shares are owned by insiders. Comparatively, 11.3% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Novartis AG has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Novartis AG’s rivals have a beta of 39.17, indicating that their average share price is 3,817% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Novartis AG and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novartis AG 3 6 4 0 2.08
Novartis AG Competitors 860 3780 6727 178 2.54

Novartis AG currently has a consensus target price of $84.41, indicating a potential upside of 1.67%. As a group, “Pharmaceuticals” companies have a potential upside of 23.36%. Given Novartis AG’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Novartis AG has less favorable growth aspects than its rivals.

Dividends

Novartis AG pays an annual dividend of $2.30 per share and has a dividend yield of 2.8%. Novartis AG pays out 81.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.5% and pay out 72.3% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Novartis AG and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Novartis AG $48.52 billion $6.71 billion 29.54
Novartis AG Competitors $8.17 billion $1.09 billion 118.82

Novartis AG has higher revenue and earnings than its rivals. Novartis AG is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Novartis AG rivals beat Novartis AG on 9 of the 15 factors compared.

About Novartis AG

Novartis AG is a holding company, which provides healthcare solutions. The Company is engaged in the research, development, manufacturing and marketing of a range of healthcare products led by pharmaceuticals. The Company’s segments include Innovative Medicines, Sandoz, Alcon and Corporate activities. Innovative Medicines researches, develops, manufactures, distributes and sells patented prescription medicines to develop health outcomes for patients and healthcare providers. Sandoz develops, manufactures, distributes and sells prescription medicines, as well as pharmaceutical active substances that are not protected by valid and enforceable third-party patents. Alcon researches, develops, manufactures, distributes and sells eye care products. Alcon is a provider of eye care with product offerings in eye care devices and vision care. The Company’s range of products includes pharmaceuticals and oncology medicines, generic and biosimilar medicines, and eye care devices.

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