NVO vs. VRTX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NVO and VRTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
NVO trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, VRTX is a standard domestic listing.
| Symbol | NVO | VRTX |
|---|---|---|
| Company Name | Novo Nordisk A/S | Vertex Pharmaceuticals Incorporated |
| Country | Denmark | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Pharmaceuticals | Biotechnology |
| Market Capitalization | 241.93 billion USD | 103.64 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | April 30, 1981 | July 24, 1991 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of NVO and VRTX 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.
Historical Performance at a Glance
| Symbol | NVO | VRTX |
|---|---|---|
| 5-Day Price Return | -7.24% | 5.85% |
| 13-Week Price Return | -21.94% | -10.60% |
| 26-Week Price Return | -34.82% | -19.57% |
| 52-Week Price Return | 67.26% | -13.09% |
| Month-to-Date Return | -3.94% | 3.21% |
| Year-to-Date Return | -44.79% | 0.38% |
| 10-Day Avg. Volume | 6.48M | 2.08M |
| 3-Month Avg. Volume | 6.47M | 1.65M |
| 3-Month Volatility | 62.40% | 47.43% |
| Beta | 1.56 | 0.31 |
Profitability
Return on Equity (TTM)
NVO
77.86%
Pharmaceuticals Industry
- Max
- 38.59%
- Q3
- 19.84%
- Median
- 11.85%
- Q1
- 5.40%
- Min
- -10.91%
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.
VRTX
22.14%
Biotechnology Industry
- Max
- 97.92%
- Q3
- 11.99%
- Median
- -19.30%
- Q1
- -51.29%
- Min
- -132.03%
In the upper quartile for the Biotechnology industry, VRTX’s Return on Equity of 22.14% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
NVO
35.61%
Pharmaceuticals Industry
- Max
- 40.67%
- Q3
- 19.07%
- Median
- 12.31%
- Q1
- 4.50%
- Min
- -9.91%
A Net Profit Margin of 35.61% places NVO in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.
VRTX
31.86%
Biotechnology Industry
- Max
- 73.34%
- Q3
- 18.98%
- Median
- -12.96%
- Q1
- -105.72%
- Min
- -259.82%
A Net Profit Margin of 31.86% places VRTX in the upper quartile for the Biotechnology industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
NVO
45.78%
Pharmaceuticals Industry
- Max
- 45.78%
- Q3
- 23.14%
- Median
- 16.68%
- Q1
- 7.98%
- Min
- -7.13%
An Operating Profit Margin of 45.78% places NVO in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
VRTX
34.36%
Biotechnology Industry
- Max
- 78.85%
- Q3
- 21.90%
- Median
- -13.30%
- Q1
- -109.94%
- Min
- -278.10%
An Operating Profit Margin of 34.36% places VRTX in the upper quartile for the Biotechnology industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | NVO | VRTX |
|---|---|---|
| Return on Equity (TTM) | 77.86% | 22.14% |
| Return on Assets (TTM) | 24.22% | 15.87% |
| Net Profit Margin (TTM) | 35.61% | 31.86% |
| Operating Profit Margin (TTM) | 45.78% | 34.36% |
| Gross Profit Margin (TTM) | 83.95% | 86.11% |
Financial Strength
Current Ratio (MRQ)
NVO
0.78
Pharmaceuticals Industry
- Max
- 4.65
- Q3
- 2.64
- Median
- 1.85
- Q1
- 1.26
- Min
- 0.78
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.
VRTX
2.52
Biotechnology Industry
- Max
- 16.97
- Q3
- 8.39
- Median
- 4.11
- Q1
- 2.64
- Min
- 0.74
VRTX’s Current Ratio of 2.52 falls into the lower quartile for the Biotechnology industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
NVO
0.59
Pharmaceuticals Industry
- Max
- 1.75
- Q3
- 0.82
- Median
- 0.35
- Q1
- 0.13
- 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.
VRTX
0.01
Biotechnology Industry
- Max
- 1.92
- Q3
- 0.79
- Median
- 0.12
- Q1
- 0.00
- Min
- 0.00
VRTX’s Debt-to-Equity Ratio of 0.01 is typical for the Biotechnology industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
NVO
149.07
Pharmaceuticals Industry
- Max
- 103.95
- Q3
- 43.60
- Median
- 9.83
- Q1
- 2.37
- 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.
VRTX
72.37
Biotechnology Industry
- Max
- 72.37
- Q3
- 1.03
- Median
- -9.59
- Q1
- -65.05
- Min
- -163.11
VRTX’s Interest Coverage Ratio of 72.37 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | NVO | VRTX |
|---|---|---|
| Current Ratio (MRQ) | 0.78 | 2.52 |
| Quick Ratio (MRQ) | 0.56 | 2.00 |
| Debt-to-Equity Ratio (MRQ) | 0.59 | 0.01 |
| Interest Coverage Ratio (TTM) | 149.07 | 72.37 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NVO
3.34%
Pharmaceuticals Industry
- Max
- 7.14%
- Q3
- 3.45%
- Median
- 2.17%
- Q1
- 0.33%
- Min
- 0.00%
NVO’s Dividend Yield of 3.34% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.
VRTX
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRTX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
NVO
61.60%
Pharmaceuticals Industry
- Max
- 199.58%
- Q3
- 97.17%
- Median
- 53.47%
- Q1
- 22.97%
- 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.
VRTX
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRTX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | NVO | VRTX |
|---|---|---|
| Dividend Yield (TTM) | 3.34% | 0.00% |
| Dividend Payout Ratio (TTM) | 61.60% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
NVO
13.78
Pharmaceuticals Industry
- Max
- 45.19
- Q3
- 27.91
- Median
- 20.59
- Q1
- 15.08
- Min
- 3.79
In the lower quartile for the Pharmaceuticals industry, NVO’s P/E Ratio of 13.78 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
VRTX
28.03
Biotechnology Industry
- Max
- 40.44
- Q3
- 39.37
- Median
- 22.12
- Q1
- 15.76
- Min
- 3.48
VRTX’s P/E Ratio of 28.03 is within the middle range for the Biotechnology industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
NVO
4.90
Pharmaceuticals Industry
- Max
- 8.87
- Q3
- 4.56
- Median
- 2.14
- Q1
- 1.58
- Min
- 0.11
NVO’s P/S Ratio of 4.90 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.
VRTX
8.93
Biotechnology Industry
- Max
- 92.67
- Q3
- 41.36
- Median
- 8.45
- Q1
- 4.46
- Min
- 0.97
VRTX’s P/S Ratio of 8.93 aligns with the market consensus for the Biotechnology industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
NVO
8.87
Pharmaceuticals Industry
- Max
- 9.78
- Q3
- 4.99
- Median
- 2.48
- Q1
- 1.53
- Min
- 0.59
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.
VRTX
6.66
Biotechnology Industry
- Max
- 22.72
- Q3
- 10.68
- Median
- 4.55
- Q1
- 2.44
- Min
- 0.59
VRTX’s P/B Ratio of 6.66 is within the conventional range for the Biotechnology 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.
Valuation at a Glance
| Symbol | NVO | VRTX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.78 | 28.03 |
| Price-to-Sales Ratio (TTM) | 4.90 | 8.93 |
| Price-to-Book Ratio (MRQ) | 8.87 | 6.66 |
| Price-to-Free Cash Flow Ratio (TTM) | 23.23 | 29.13 |