NOVO NORDISK A/S vs Novartis AG, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
What is priced in could hardly read stranger: Novo Nordisk, the higher-margin franchise (41.3% operating against 32.4%, 33.1% net against 25.6%), trades at 14.2 times earnings against Novartis' 21.5, a seven-turn discount on the better income statement. Both are debt-free European pharma royalty; returns on equity run 52.8% against 30%, Novo's way. Novartis converts more price into free cash, 5.8% against 4.1%. The discount has one name, GLP-1 competition, the fear that Novo's obesity franchise erodes faster than Novartis' diversified estate. The market is charging seven turns for diversification against the sector's best current operator; that is either prudence or the cheapest quality in large-cap pharma.
Comparison updated 2026-07-10.
| Metric | NVO | NVS |
|---|---|---|
| Price | $48.01 | $155.27 |
| Market cap | $213.3B | $301.1B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Growth | Mature |
| Implied growth (priced in) | — | +8.3% |
| P/E | 14.2 | 21.5 |
| P/B | 7.47 | 6.47 |
| P/S | 4.69 | 5.52 |
| EV/EBITDA | 10.0 | 16.4 |
| Revenue growth | +22.1% | +6.4% |
| Gross margin | 81.0% | 78.8% |
| Operating margin | 41.3% | 32.4% |
| Net margin | 33.1% | 25.6% |
| Return on equity | 52.8% | 30.0% |
| Return on assets | 18.9% | 12.6% |
| Return on invested capital | 51.6% | 32.4% |
| FCF yield | 4.1% | 5.8% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 0.80 | 1.12 |
| Altman Z (solvency) | 4.25 | 3.86 |
| Piotroski F (quality) | 4 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.