Seek Returns logo

BAC vs. NVO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at BAC and NVO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

BAC is a standard domestic listing, while NVO trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolBACNVO
Company NameBank of America CorporationNovo Nordisk A/S
CountryUnited StatesDenmark
GICS SectorFinancialsHealth Care
GICS IndustryBanksPharmaceuticals
Market Capitalization358.13 billion USD240.04 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973April 30, 1981
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of BAC and NVO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BAC vs. NVO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBACNVO
5-Day Price Return1.34%6.80%
13-Week Price Return8.00%-19.59%
26-Week Price Return4.36%-44.66%
52-Week Price Return21.88%67.26%
Month-to-Date Return2.28%10.67%
Year-to-Date Return10.01%-44.24%
10-Day Avg. Volume32.33M10.57M
3-Month Avg. Volume39.90M6.69M
3-Month Volatility19.69%64.82%
Beta1.361.51

Profitability

Return on Equity (TTM)

BAC

9.46%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

BAC’s Return on Equity of 9.46% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

NVO

77.86%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.90%
Q1
5.63%
Min
-9.96%

NVO’s Return on Equity of 77.86% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BAC vs. NVO: A comparison of their Return on Equity (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

BAC

30.16%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

BAC’s Net Profit Margin of 30.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

NVO

35.61%

Pharmaceuticals Industry

Max
34.51%
Q3
17.73%
Median
12.12%
Q1
5.99%
Min
-7.73%

NVO’s Net Profit Margin of 35.61% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

BAC vs. NVO: A comparison of their Net Profit Margin (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

BAC

32.74%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

BAC’s Operating Profit Margin of 32.74% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

NVO

45.78%

Pharmaceuticals Industry

Max
41.53%
Q3
23.00%
Median
16.24%
Q1
9.24%
Min
-6.94%

NVO’s Operating Profit Margin of 45.78% is exceptionally high, placing it well above the typical range for the Pharmaceuticals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

BAC vs. NVO: A comparison of their Operating Profit Margin (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolBACNVO
Return on Equity (TTM)9.46%77.86%
Return on Assets (TTM)0.84%24.22%
Net Profit Margin (TTM)30.16%35.61%
Operating Profit Margin (TTM)32.74%45.78%
Gross Profit Margin (TTM)--83.95%

Financial Strength

Current Ratio (MRQ)

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

NVO

0.78

Pharmaceuticals Industry

Max
4.49
Q3
2.77
Median
1.74
Q1
1.26
Min
0.11

NVO’s Current Ratio of 0.78 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

BAC vs. NVO: A comparison of their Current Ratio (MRQ) against their respective Banks and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BAC

2.54

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

NVO

0.59

Pharmaceuticals Industry

Max
2.44
Q3
1.07
Median
0.42
Q1
0.11
Min
0.00

NVO’s Debt-to-Equity Ratio of 0.59 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

BAC vs. NVO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

NVO

149.07

Pharmaceuticals Industry

Max
103.95
Q3
44.18
Median
9.83
Q1
2.82
Min
-42.71

With an Interest Coverage Ratio of 149.07, NVO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Pharmaceuticals industry. This stems from either robust earnings or a conservative debt load.

BAC vs. NVO: A comparison of their Interest Coverage Ratio (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolBACNVO
Current Ratio (MRQ)--0.78
Quick Ratio (MRQ)--0.56
Debt-to-Equity Ratio (MRQ)2.540.59
Interest Coverage Ratio (TTM)--149.07

Growth

Revenue Growth

BAC vs. NVO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BAC vs. NVO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BAC

2.66%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

BAC’s Dividend Yield of 2.66% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

NVO

3.30%

Pharmaceuticals Industry

Max
6.98%
Q3
3.32%
Median
2.13%
Q1
0.14%
Min
0.00%

NVO’s Dividend Yield of 3.30% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

BAC vs. NVO: A comparison of their Dividend Yield (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

BAC

33.91%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

BAC’s Dividend Payout Ratio of 33.91% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

NVO

61.60%

Pharmaceuticals Industry

Max
165.20%
Q3
90.59%
Median
49.13%
Q1
28.91%
Min
0.00%

NVO’s Dividend Payout Ratio of 61.60% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BAC vs. NVO: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolBACNVO
Dividend Yield (TTM)2.66%3.30%
Dividend Payout Ratio (TTM)33.91%61.60%

Valuation

Price-to-Earnings Ratio (TTM)

BAC

12.73

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

A P/E Ratio of 12.73 places BAC in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

NVO

13.91

Pharmaceuticals Industry

Max
42.51
Q3
26.88
Median
19.11
Q1
15.12
Min
0.00

In the lower quartile for the Pharmaceuticals industry, NVO’s P/E Ratio of 13.91 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

BAC vs. NVO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

BAC

2.33

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

NVO

4.95

Pharmaceuticals Industry

Max
7.55
Q3
4.54
Median
2.11
Q1
1.52
Min
0.00

NVO’s P/S Ratio of 4.95 is in the upper echelon for the Pharmaceuticals industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

BAC vs. NVO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

BAC

1.17

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

BAC’s P/B Ratio of 1.17 is within the conventional range for the Banks industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NVO

8.87

Pharmaceuticals Industry

Max
9.78
Q3
4.96
Median
2.23
Q1
1.46
Min
0.60

NVO’s P/B Ratio of 8.87 is in the upper tier for the Pharmaceuticals industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

BAC vs. NVO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolBACNVO
Price-to-Earnings Ratio (TTM)12.7313.91
Price-to-Sales Ratio (TTM)2.334.95
Price-to-Book Ratio (MRQ)1.178.87
Price-to-Free Cash Flow Ratio (TTM)8.1223.46