Novartis (NYSE:NVS) and Redhill Biopharma (NASDAQ:RDHL) Head to Head Review

Redhill Biopharma (NASDAQ:RDHL) and Novartis (NYSE:NVS) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Redhill Biopharma and Novartis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redhill Biopharma	1	0	0	0	1.00
Novartis	0	10	6	0	2.38

Novartis has a consensus price target of $153.00, suggesting a potential upside of 10.36%. Given Novartis’ stronger consensus rating and higher possible upside, analysts clearly believe Novartis is more favorable than Redhill Biopharma.

Volatility & Risk

Redhill Biopharma has a beta of 4.96, suggesting that its share price is 396% more volatile than the S&P 500. Comparatively, Novartis has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Earnings & Valuation

This table compares Redhill Biopharma and Novartis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redhill Biopharma	$290,000.00	12.06	-$430,000.00	$900.00	0.00
Novartis	$54.53 billion	4.85	$13.98 billion	$6.63	20.91

Novartis has higher revenue and earnings than Redhill Biopharma. Redhill Biopharma is trading at a lower price-to-earnings ratio than Novartis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Redhill Biopharma and Novartis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redhill Biopharma	N/A	N/A	N/A
Novartis	23.29%	38.56%	14.47%

Insider & Institutional Ownership

7.2% of Redhill Biopharma shares are owned by institutional investors. Comparatively, 13.1% of Novartis shares are owned by institutional investors. 6.8% of Redhill Biopharma shares are owned by insiders. Comparatively, 0.0% of Novartis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Novartis beats Redhill Biopharma on 10 of the 14 factors compared between the two stocks.

About Redhill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

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.