Novartis AG (NVS) vs. Juniper Pharmaceuticals (JNP) Financial Survey

Novartis AG (NYSE: NVS) and Juniper Pharmaceuticals (NASDAQ:JNP) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Novartis AG and Juniper Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novartis AG 13.52% 15.51% 8.41%
Juniper Pharmaceuticals 13.94% 21.49% 14.40%

Insider & Institutional Ownership

10.9% of Novartis AG shares are owned by institutional investors. Comparatively, 36.2% of Juniper Pharmaceuticals shares are owned by institutional investors. 0.0% of Novartis AG shares are owned by company insiders. Comparatively, 7.2% of Juniper Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Novartis AG and Juniper Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novartis AG 2 7 4 0 2.15
Juniper Pharmaceuticals 0 1 2 0 2.67

Novartis AG presently has a consensus target price of $82.92, indicating a potential downside of 3.96%. Juniper Pharmaceuticals has a consensus target price of $23.00, indicating a potential upside of 384.21%. Given Juniper Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Juniper Pharmaceuticals is more favorable than Novartis AG.

Valuation & Earnings

This table compares Novartis AG and Juniper Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Novartis AG $49.18 billion 4.59 $14.46 billion $2.74 31.51
Juniper Pharmaceuticals $57.69 million 0.89 $9.49 million $0.74 6.42

Novartis AG has higher revenue and earnings than Juniper Pharmaceuticals. Juniper Pharmaceuticals is trading at a lower price-to-earnings ratio than Novartis AG, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Novartis AG has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Juniper Pharmaceuticals has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Dividends

Novartis AG pays an annual dividend of $2.30 per share and has a dividend yield of 2.7%. Juniper Pharmaceuticals does not pay a dividend. Novartis AG pays out 83.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Novartis AG Company Profile

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.

Juniper Pharmaceuticals Company Profile

Juniper Pharmaceuticals, Inc. is a women’s health therapeutics company. The Company is focused on developing therapeutics that address unmet medical needs in women’s health. It operates in two segments: product and service. The product segment is engaged in manufacturing and supplying CRINONE, the Company’s commercialized product. The service segment includes product development, clinical trial manufacturing, and advanced analytical and consulting services, as well as characterizing and developing its pharmaceutical product candidates. The Company’s pipeline of proprietary products includes JNP-0101, JNP-0201 and JNP-0301. JNP-0101 is developed to deliver oxybutynin for the treatment of overactive bladder in women. JNP-0201 is being designed to deliver natural hormones locally to vaginal tissue. JNP-0301 is being developed for the prevention of pre-term birth in women with a short cervical length. CRINONE is developed as a progesterone gel.

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