Novartis (NYSE:NVS – Get Free Report) and Janone (NASDAQ:ALTS – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Novartis and Janone, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Novartis | 2 | 7 | 0 | 0 | 1.78 |
Janone | 0 | 0 | 0 | 0 | 0.00 |
Novartis presently has a consensus target price of $121.50, suggesting a potential upside of 23.49%. Given Novartis’ stronger consensus rating and higher possible upside, equities analysts plainly believe Novartis is more favorable than Janone.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Novartis | $49.94 billion | 4.03 | $14.85 billion | $8.61 | 11.43 |
Janone | $7.11 million | 8.81 | -$7.81 million | N/A | N/A |
Novartis has higher revenue and earnings than Janone.
Volatility & Risk
Novartis has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Janone has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.
Insider & Institutional Ownership
13.1% of Novartis shares are owned by institutional investors. Comparatively, 6.3% of Janone shares are owned by institutional investors. 0.0% of Novartis shares are owned by insiders. Comparatively, 4.9% of Janone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Novartis and Janone’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Novartis | 35.96% | 34.80% | 15.13% |
Janone | N/A | -2,940.01% | -39.81% |
Dividends
Novartis pays an annual dividend of $2.43 per share and has a dividend yield of 2.5%. Janone pays an annual dividend of $1.22 per share and has a dividend yield of 27.4%. Novartis pays out 28.2% of its earnings in the form of a dividend.
Summary
Novartis beats Janone on 8 of the 13 factors compared between the two stocks.
About Novartis
Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran, a therapy to reduce LDL cholesterol; and Dawn Health for the development and commercialization of Ekiva, a digital solution designed for people living with Paroxysmal Nocturnal Hemoglobinuria. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.
About Janone
JanOne Inc., a clinical-stage biopharmaceutical company, focuses on identifying, acquiring, licensing, developing, partnering, and commercializing novel, non-opioid, and non-addictive therapies to address the unmet medical need for the treatment of pain and addiction. It operates through three segments: Biotechnology, Recycling, and Technology. The company’s lead product candidate is JAN101, a patented oral and sustained release pharmaceutical composition of sodium nitrite that targets poor blood flow to the extremities in patients with diabetes or peripheral artery disease to treat pain. It also provides turnkey appliance recycling and replacement services for utilities and other sponsors of energy efficiency programs; and designs, develops, and sells cellular transceiver modules and associated wireless services. The company was formerly known as Appliance Recycling Centers of America, Inc. and changed its name to JanOne Inc. in September 2019. JanOne Inc. was founded in 1976 and is headquartered in Las Vegas, Nevada.
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