Novartis vs Sanofi Which Offers More Value?

Novartis and Sanofi are two pharmaceutical giants that have been competing in the global stock market for many years. Novartis, based in Switzerland, is known for its innovative drugs and strong financial performance. Sanofi, a French multinational company, is also a major player in the pharmaceutical industry with a diverse portfolio of medications. Investors often compare the performance of these two companies to make informed decisions about their stock portfolios. Let's explore the key factors that differentiate Novartis vs Sanofi stocks.

Novartis or Sanofi?

When comparing Novartis and Sanofi, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Novartis and Sanofi.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Novartis has a dividend yield of 7.54%, while Sanofi has a dividend yield of 3.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Novartis reports a 5-year dividend growth of 5.40% year and a payout ratio of 43.31%. On the other hand, Sanofi reports a 5-year dividend growth of 12.94% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Novartis P/E ratio at 11.44 and Sanofi's P/E ratio at 8.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Novartis P/B ratio is 4.65 while Sanofi's P/B ratio is 0.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Novartis has seen a 5-year revenue growth of -0.02%, while Sanofi's is 1.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Novartis's ROE at 41.08% and Sanofi's ROE at 9.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $100.10 for Novartis and $48.00 for Sanofi. Over the past year, Novartis's prices ranged from $92.35 to $120.92, with a yearly change of 30.94%. Sanofi's prices fluctuated between $45.22 and $58.97, with a yearly change of 30.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.