Novartis (NYSE:NVS – Get Free Report) and Sonnet BioTherapeutics (NASDAQ:SONN – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Institutional and Insider Ownership
13.1% of Novartis shares are held by institutional investors. Comparatively, 9.4% of Sonnet BioTherapeutics shares are held by institutional investors. 0.0% of Novartis shares are held by insiders. Comparatively, 2.0% of Sonnet BioTherapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Novartis and Sonnet BioTherapeutics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Novartis | 23.56% | 37.24% | 15.85% |
Sonnet BioTherapeutics | N/A | -408.93% | -174.13% |
Risk and Volatility
Analyst Ratings
This is a summary of current ratings and target prices for Novartis and Sonnet BioTherapeutics, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Novartis | 3 | 6 | 1 | 0 | 1.80 |
Sonnet BioTherapeutics | 0 | 0 | 1 | 0 | 3.00 |
Novartis currently has a consensus price target of $123.38, indicating a potential upside of 13.03%. Sonnet BioTherapeutics has a consensus price target of $20.00, indicating a potential upside of 1,365.31%. Given Sonnet BioTherapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Sonnet BioTherapeutics is more favorable than Novartis.
Earnings & Valuation
This table compares Novartis and Sonnet BioTherapeutics”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Novartis | $51.72 billion | 4.31 | $11.94 billion | $5.88 | 18.56 |
Sonnet BioTherapeutics | $1.00 million | 4.18 | -$7.44 million | N/A | N/A |
Novartis has higher revenue and earnings than Sonnet BioTherapeutics.
Summary
Novartis beats Sonnet BioTherapeutics on 8 of the 11 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 Sonnet BioTherapeutics
Sonnet BioTherapeutics Holdings, Inc., a biotechnology company, owns a platform for biologic medicines of single or bifunctional action. The company develops fully human albumin binding technology, which utilizes human single chain antibodies fragment that binds to and hitch-hikes on human serum albumin for transport to target tissues. Its lead product candidate is SON-1010, a fully human single-chain version of interleukin 12 that is in Phase 1b/2a clinical trial for the treatment of solid tumor indications, including ovarian cancer, non-small cell lung cancer, and head and neck cancer. The company is also developing SON-080, a fully human version of interleukin 6, which is in Phase 1b/I2a clinical trail to treat chemotherapy-induced peripheral neuropathy and diabetic peripheral neuropathy; and SON-1210, a bispecific compound for solid tumor indications, including colorectal cancer. It has a license agreement with New Life Therapeutics Pte, LTD. to develop and commercialize pharmaceutical preparations containing a specific recombinant human interleukin-6; and strategic development collaboration with Sarcoma Oncology Center to advance SON-1210. The company is headquartered in Princeton, New Jersey.
Receive News & Ratings for Novartis Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Novartis and related companies with MarketBeat.com's FREE daily email newsletter.