Contrasting Concordia International Corp. (CXRX) and Novo Nordisk A/S (NVO)
Concordia International Corp. (NASDAQ: CXRX) and Novo Nordisk A/S (NYSE:NVO) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Risk and Volatility
Concordia International Corp. has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Insider & Institutional Ownership
9.1% of Concordia International Corp. shares are held by institutional investors. Comparatively, 6.0% of Novo Nordisk A/S shares are held by institutional investors. 0.1% of Novo Nordisk A/S shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Concordia International Corp. and Novo Nordisk A/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Concordia International Corp.||5||0||0||0||1.00|
|Novo Nordisk A/S||3||6||0||0||1.67|
Concordia International Corp. presently has a consensus target price of $8.00, indicating a potential upside of 589.66%. Given Concordia International Corp.’s higher probable upside, research analysts clearly believe Concordia International Corp. is more favorable than Novo Nordisk A/S.
Earnings & Valuation
This table compares Concordia International Corp. and Novo Nordisk A/S’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Concordia International Corp.||$677.25 million||0.09||$326.58 million||($35.65)||-0.03|
|Novo Nordisk A/S||$18.44 billion||5.22||$8.69 billion||$2.25||21.80|
Novo Nordisk A/S has higher revenue and earnings than Concordia International Corp.. Concordia International Corp. 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.
Novo Nordisk A/S pays an annual dividend of $0.82 per share and has a dividend yield of 1.7%. Concordia International Corp. does not pay a dividend. Novo Nordisk A/S pays out 36.4% of its earnings in the form of a dividend. Concordia International Corp. has raised its dividend for 20 consecutive years.
This table compares Concordia International Corp. and Novo Nordisk A/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Concordia International Corp.||-269.97%||-83.96%||-0.62%|
|Novo Nordisk A/S||33.82%||87.49%||40.72%|
Novo Nordisk A/S beats Concordia International Corp. on 10 of the 15 factors compared between the two stocks.
About Concordia International Corp.
Concordia International Corp, formerly Concordia Healthcare Corp, is a Canada-based pharmaceutical company. The Company, through subsidiaries, owns a portfolio of branded and generic prescription products. Its activities are divided into four segments: Concordia North America, includes sales of pharmaceutical products, such as Donnatal for the treatment of irritable bowel syndrome, Zonegran for the treatment of partial seizures in adults with epilepsy and Nilandron for the treatment of metastatic prostate cancer; Concordia International, includes a portfolio of branded and generic products that are sold to wholesalers, hospitals and pharmacies in over 100 countries, and focuses on acquisition, licensing and development of off-patent prescription medicines; Orphan Drugs, includes Photofrin, which is for the treatment of certain forms of rare cancer, and Corporate cost centre, includes centralized costs incurred by the Company.
About Novo Nordisk A/S
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.
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