Novartis (NYSE:NVS) and American Brivision (Holding) (OTCMKTS:ABVC) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Novartis and American Brivision (Holding), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novartis 2 1 5 0 2.38
American Brivision (Holding) 0 0 0 0 N/A

Novartis presently has a consensus target price of $91.67, suggesting a potential downside of 6.24%. Given Novartis’ higher possible upside, equities research analysts plainly believe Novartis is more favorable than American Brivision (Holding).

Insider & Institutional Ownership

10.6% of Novartis shares are held by institutional investors. 0.0% of Novartis shares are held by company insiders. Comparatively, 49.6% of American Brivision (Holding) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Novartis and American Brivision (Holding)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novartis $47.50 billion 4.72 $11.73 billion $5.24 18.66
American Brivision (Holding) N/A N/A N/A N/A N/A

Novartis has higher revenue and earnings than American Brivision (Holding).

Profitability

This table compares Novartis and American Brivision (Holding)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novartis 24.73% 23.39% 9.91%
American Brivision (Holding) N/A N/A -40.35%

Risk & Volatility

Novartis has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, American Brivision (Holding) has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500.

Summary

Novartis beats American Brivision (Holding) on 8 of the 9 factors compared between the two stocks.

Novartis Company Profile

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company's Innovative Medicines segment offers patented prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology and dermatology, respiratory, cardio-metabolic, and established medicine products. The company's Sandoz segment provides active ingredients and finished dosage forms of pharmaceuticals in cardiovascular, central nervous system, dermatology, gastrointestinal and hormonal therapy, metabolism, oncology, ophthalmic, pain, and respiratory areas; and finished dosage form anti-infective. It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services. The company's Alcon segment offers intraocular lenses and equipment for cataract procedures; equipment, instruments, and devices for vitreoretinal surgeries; surgical equipment and diagnostic devices for refractive surgical procedures; and devices to treat glaucoma. It also provides viscoelastics, surgical solutions, diagnostic ophthalmic products, surgical packs, and other disposable products for cataract and vitreoretinal surgery. In addition, this segment offers contact lenses and ocular health products; over-the-counter ophthalmic products; eye drops for the temporary relief of ocular itching due to allergies; vitamins for ocular health; and iLux Device, a therapeutic device used to treat meibomian gland dysfunction. Novartis AG has collaboration agreements with Xencor; Surface Oncology; Ligand Pharmaceuticals, Inc.; Amgen; University of California, Berkeley; Bristol-Myers Squibb; IBM Watson Health; Allergan plc; Science 37, Inc.; Bill & Melinda Gates Foundation; PEAR Therapeutics; Pfizer; Conatus Pharmaceuticals Inc.; and TRIO. The company was founded in 1895 and is headquartered in Basel, Switzerland.

American Brivision (Holding) Company Profile

American BriVision (Holding) Corporation, a clinical stage biopharmaceutical company, develops drugs and medical devices to fulfill unmet medical needs in the United States. The company's licensed products include ABV-1501, a combination therapy for triple negative breast cancer; ABV-1502, a combination therapy for solid tumors with Anti-PD1; ABV-1503, a combination therapy for chronic lymphocytic leukemia; ABV-1504 for depressive disorders; ABV-1505, a combination therapy for attention deficit hyperactivity disorder; BFC-1401, a vitreous substitute for vitrectomy; and Maitake combination therapy. It has a co-development agreement with Rgene Corporation to develop Maitake combination therapy products, such as ABV-1507 HER2/neu positive breast cancer combination therapy, ABV-1511 pancreatic cancer combination therapy, and ABV-1527 ovary cancer combination therapy; and collaborative agreements with BioLite Inc and BioFirst Corporation. The company was founded in 2015 and is based in Goshen, New York. American BriVision (Holding) Corporation is a subsidiary of YuanGene Corporation.

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