Novo Nordisk A/S (NYSE: NVO) and Aegerion Pharmaceuticals (NASDAQ:AEGR) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Novo Nordisk A/S 33.82% 90.74% 41.29%
Aegerion Pharmaceuticals -75.07% N/A -29.21%

Dividends

Novo Nordisk A/S pays an annual dividend of $0.81 per share and has a dividend yield of 1.8%. Aegerion Pharmaceuticals does not pay a dividend. Novo Nordisk A/S pays out 36.0% of its earnings in the form of a dividend. Aegerion Pharmaceuticals has increased its dividend for 20 consecutive years.

Risk & Volatility

Novo Nordisk A/S has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Aegerion Pharmaceuticals has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Novo Nordisk A/S $18.13 billion 6.20 $8.54 billion $2.25 20.15
Aegerion Pharmaceuticals N/A N/A N/A ($5.97) -0.31

Novo Nordisk A/S has higher revenue and earnings than Aegerion Pharmaceuticals. Aegerion Pharmaceuticals 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 Ratings

This is a breakdown of recent ratings and recommmendations for Novo Nordisk A/S and Aegerion Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novo Nordisk A/S 4 6 3 0 1.92
Aegerion Pharmaceuticals 0 2 0 0 2.00

Novo Nordisk A/S presently has a consensus price target of $57.00, suggesting a potential upside of 25.74%. Aegerion Pharmaceuticals has a consensus price target of $1.50, suggesting a potential downside of 19.79%. Given Novo Nordisk A/S’s higher possible upside, research analysts plainly believe Novo Nordisk A/S is more favorable than Aegerion Pharmaceuticals.

Insider & Institutional Ownership

6.3% of Novo Nordisk A/S shares are held by institutional investors. Comparatively, 84.9% of Aegerion Pharmaceuticals shares are held by institutional investors. 4.6% of Aegerion Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Novo Nordisk A/S beats Aegerion Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company’s diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company’s biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.

Aegerion Pharmaceuticals Company Profile

Aegerion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the development and commercialization of therapies for patients with debilitating rare diseases. It operates through pharmaceuticals segment. Its products include lomitapide and metreleptin. Lomitapide is a small molecule microsomal triglyceride transfer protein (MTP) inhibitor. Lomitapide received marketing approval under the brand name Juxtapid (lomitapide) capsules from the United States Food and Drug Administration (FDA) as an adjunct to a low-fat diet and other lipid-lowering treatments. It also received marketing authorization for lomitapide in the European Union (EU) under the brand name LOJUXTA (lomitapide) hard capsules (LOJUXTA) as a treatment for HoFH in adults. Metreleptin is a recombinant human leptin analog that exerts its function by binding to and activating the human leptin receptor. Metreleptin is marketed in the United States under the brand name MYALEPT (metreleptin) for injection (MYALEPT).

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