Novartis AG (NYSE: NVS) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its rivals? We will compare Novartis AG to related companies based on the strength of its profitability, dividends, risk, valuation, earnings, analyst recommendations and institutional ownership.

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 65.6% of their earnings in the form of a dividend.

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 -2,859.53% -67.82% -9.13%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Novartis AG $49.18 billion $14.46 billion 29.39
Novartis AG Competitors $8.08 billion $2.63 billion -0.02

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

Institutional & Insider Ownership

10.9% of Novartis AG shares are owned by institutional investors. Comparatively, 43.7% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.0% of Novartis AG shares are owned by insiders. Comparatively, 11.9% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 0.95, indicating that their average share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings 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 847 3782 6814 185 2.54

Novartis AG currently has a consensus target price of $84.52, suggesting a potential upside of 2.35%. As a group, “Pharmaceuticals” companies have a potential upside of 23.22%. Given Novartis AG’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Novartis AG has less favorable growth aspects than its rivals.

Summary

Novartis AG rivals beat Novartis AG on 8 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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