Revance Therapeutics (NYSE: NVO) 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 institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Risk & Volatility
Revance Therapeutics has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Novo Nordisk A/S has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Insider & Institutional Ownership
94.4% of Revance Therapeutics shares are owned by institutional investors. Comparatively, 6.7% of Novo Nordisk A/S shares are owned by institutional investors. 5.1% of Revance Therapeutics shares are owned 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.
Valuation and Earnings
This table compares Revance Therapeutics and Novo Nordisk A/S’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Revance Therapeutics||$260,000.00||3,757.93||-$120.58 million||($4.01)||-6.60|
|Novo Nordisk A/S||$16.96 billion||7.05||$5.79 billion||$2.34||20.93|
Novo Nordisk A/S has higher revenue and earnings than Revance Therapeutics. Revance Therapeutics 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 $0.65 per share and has a dividend yield of 1.3%. Revance Therapeutics does not pay a dividend. Novo Nordisk A/S pays out 27.8% of its earnings in the form of a dividend.
This is a summary of current ratings for Revance Therapeutics and Novo Nordisk A/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Novo Nordisk A/S||0||2||4||0||2.67|
Revance Therapeutics currently has a consensus price target of $48.67, suggesting a potential upside of 83.99%. Given Revance Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Revance Therapeutics is more favorable than Novo Nordisk A/S.
This table compares Revance Therapeutics and Novo Nordisk A/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Novo Nordisk A/S||35.95%||83.32%||39.88%|
About Revance Therapeutics
Revance Therapeutics, Inc., a biotechnology company, engages in the development, manufacturing, and commercialization of novel botulinum toxin products for various aesthetic and therapeutic indications. The company’s drug candidate is DaxibotulinumtoxinA for injection (RT002), which is in phase III clinical trials to treat glabellar (frown) lines, as well as in phase II clinical trials for the treatment of cervical dystonia and plantar fasciitis. It is also developing DaxibotulinumtoxinA topical gel (RT001) that is in preclinical development. Revance Therapeutics, Inc. has a collaboration agreement with Mylan N.V. (MYL) for the development, manufacture, and commercialization of a biosimilar to BOTOX. The company was formerly known as Essentia Biosystems, Inc. and changed its name to Revance Therapeutics, Inc. in April 2005. Revance Therapeutics, Inc. was founded in 1999 and is headquartered in Newark, California.
About Novo Nordisk A/S
Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes Care and Obesity, and Biopharmaceuticals. The Diabetes Care and Obesity segment provides insulins, GLP-1 and related delivery systems, and oral anti-diabetic drugs and obesity. The Biopharmaceuticals segment offers products in the areas of haemophilia care, growth hormone therapy, and hormone replacement therapy. Novo Nordisk A/S has a research and licensing agreement with DUKE National University Singapore Medical School to develop stem cell-based treatments for chronic heart failure and age-related macular degeneration, as well as a research collaboration with Kallyope Inc. The company markets and distributes its products through distributors and independent agents. Novo Nordisk A/S was founded in 1925 and is headquartered in Bagsvaerd, Denmark.
Receive News & Ratings for Revance Therapeutics Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Revance Therapeutics and related companies with MarketBeat.com’s FREE daily email newsletter.