Opko Health (NASDAQ: OPK) and Novartis (NYSE:NVS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
This table compares Opko Health and Novartis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Opko Health has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Novartis has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Institutional & Insider Ownership
23.4% of Opko Health shares are owned by institutional investors. Comparatively, 10.8% of Novartis shares are owned by institutional investors. 40.2% of Opko Health shares are owned by company insiders. Comparatively, 0.0% of Novartis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Novartis pays an annual dividend of $2.98 per share and has a dividend yield of 3.6%. Opko Health does not pay a dividend. Novartis pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and price targets for Opko Health and Novartis, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Opko Health presently has a consensus price target of $12.10, suggesting a potential upside of 236.11%. Novartis has a consensus price target of $87.75, suggesting a potential upside of 6.93%. Given Opko Health’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Opko Health is more favorable than Novartis.
Earnings & Valuation
This table compares Opko Health and Novartis’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Opko Health||$1.07 billion||1.89||-$308.87 million||($0.56)||-6.43|
|Novartis||$49.11 billion||3.87||$7.70 billion||$3.25||25.25|
Novartis has higher revenue and earnings than Opko Health. Opko Health is trading at a lower price-to-earnings ratio than Novartis, indicating that it is currently the more affordable of the two stocks.
Novartis beats Opko Health on 9 of the 16 factors compared between the two stocks.
About Opko Health
OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.
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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