Reviewing AzurRx BioPharma (AZRX) and Novartis (NVS)

AzurRx BioPharma (NASDAQ: AZRX) and Novartis (NYSE:NVS) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Institutional & Insider Ownership

8.4% of AzurRx BioPharma shares are held by institutional investors. Comparatively, 11.0% of Novartis shares are held by institutional investors. 9.1% of AzurRx BioPharma shares are held by company insiders. Comparatively, 0.0% of Novartis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Novartis pays an annual dividend of $2.30 per share and has a dividend yield of 2.6%. AzurRx BioPharma does not pay a dividend. Novartis pays out 70.1% of its earnings in the form of a dividend.

Risk and Volatility

AzurRx BioPharma has a beta of -0.98, meaning that its share price is 198% less volatile than the S&P 500. Comparatively, Novartis has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for AzurRx BioPharma and Novartis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AzurRx BioPharma 0 0 1 0 3.00
Novartis 4 5 3 0 1.92

AzurRx BioPharma presently has a consensus price target of $8.00, indicating a potential upside of 170.27%. Novartis has a consensus price target of $84.41, indicating a potential downside of 2.88%. Given AzurRx BioPharma’s stronger consensus rating and higher probable upside, research analysts plainly believe AzurRx BioPharma is more favorable than Novartis.

Profitability

This table compares AzurRx BioPharma and Novartis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AzurRx BioPharma N/A -470.85% -205.40%
Novartis 15.69% 16.03% 8.53%

Earnings and Valuation

This table compares AzurRx BioPharma and Novartis’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AzurRx BioPharma N/A N/A -$14.59 million N/A N/A
Novartis $49.11 billion 4.10 $7.70 billion $3.28 26.50

Novartis has higher revenue and earnings than AzurRx BioPharma.

Summary

Novartis beats AzurRx BioPharma on 9 of the 13 factors compared between the two stocks.

About AzurRx BioPharma

AzurRx BioPharma, Inc. is a clinical development-stage biopharmaceutical company. The Company is engaged in the research and development of non-systemic biologics for the treatment of patients with gastrointestinal (GI) disorders. The Company’s product pipeline consists of two therapeutic proteins, such as MS1819 and AZX1101. MS1819 is an acid-resistant secreted lipase produced by Yarrowia lipolytica, known as LIP2, that the Company is developing through recombinant deoxyribonucleic acid (DNA) technology for the treatment of exocrine pancreatic insufficiency (EPI), associated with chronic pancreatitis (CP) and cystic fibrosis (CF). AZX1101 is a recombinant-lactamase combination of bacterial origin under development for the prevention of hospital-acquired infections by resistant bacterial strains induced by parenteral administration of b-lactam antibiotics (known as nosocomial infections), as well as the prevention of antibiotic-associated diarrhea (AAD).

About Novartis

Novartis AG is a holding company, which provides healthcare solutions. The Company is engaged in the research, development, manufacturing and marketing of a range of healthcare products led by pharmaceuticals. The Company’s segments include Innovative Medicines, Sandoz, Alcon and Corporate activities. Innovative Medicines researches, develops, manufactures, distributes and sells patented prescription medicines to develop health outcomes for patients and healthcare providers. Sandoz develops, manufactures, distributes and sells prescription medicines, as well as pharmaceutical active substances that are not protected by valid and enforceable third-party patents. Alcon researches, develops, manufactures, distributes and sells eye care products. Alcon is a provider of eye care with product offerings in eye care devices and vision care. The Company’s range of products includes pharmaceuticals and oncology medicines, generic and biosimilar medicines, and eye care devices.

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