Innocoll Holdings PLC (INNL) and Novartis AG (NVS) Critical Review
Innocoll Holdings PLC (NASDAQ: INNL) and Novartis AG (NYSE:NVS) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Novartis AG pays an annual dividend of $2.30 per share and has a dividend yield of 2.7%. Innocoll Holdings PLC does not pay a dividend. Novartis AG pays out 83.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
34.2% of Innocoll Holdings PLC shares are held by institutional investors. Comparatively, 11.0% of Novartis AG shares are held by institutional investors. 0.0% of Novartis AG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Innocoll Holdings PLC and Novartis AG’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Innocoll Holdings PLC||N/A||N/A||N/A||($1.67)||-1.41|
|Novartis AG||$49.18 billion||4.02||$14.46 billion||$2.74||30.76|
Novartis AG has higher revenue and earnings than Innocoll Holdings PLC. Innocoll Holdings PLC is trading at a lower price-to-earnings ratio than Novartis AG, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Innocoll Holdings PLC and Novartis AG, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Innocoll Holdings PLC||0||3||1||0||2.25|
Innocoll Holdings PLC currently has a consensus target price of $4.50, indicating a potential upside of 91.49%. Novartis AG has a consensus target price of $84.44, indicating a potential upside of 0.17%. Given Innocoll Holdings PLC’s higher possible upside, equities analysts clearly believe Innocoll Holdings PLC is more favorable than Novartis AG.
Risk and Volatility
Innocoll Holdings PLC has a beta of -0.3, indicating that its stock price is 130% less volatile than the S&P 500. Comparatively, Novartis AG has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
This table compares Innocoll Holdings PLC and Novartis AG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Innocoll Holdings PLC||-1,051.20%||N/A||-138.53%|
Novartis AG beats Innocoll Holdings PLC on 10 of the 13 factors compared between the two stocks.
About Innocoll Holdings PLC
Innocoll Holdings Public Limited Company is a commercial-stage specialty pharmaceutical and medical device company with late-stage development programs. The Company operates through the segment of manufacture and sale of collagen-based pharmaceutical products. It utilizes collagen-based technology platform to develop its biodegradable and bioresorbable products and product candidates, which can be broken down by the body without the need for surgical removal or applied topically. Using its processes at its manufacturing facility, it derives and purifies bovine and equine collagen and then utilizes its technology platform to incorporate the purified collagen into its topical and implantable products. Its lead product candidates are XaraColl for the treatment of post-operative pain and Cogenzia for the treatment of diabetic foot infections. Its marketed products include CollaGUARD, Collatamp, Septocoll and RegenePro. It has initiated its Phase III efficacy trials for Cogenzia.
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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