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NVO vs TMO

NVO
Novo Nordisk A/S
NEUTRAL
Price
$42.22
Market Cap
$187.21B
Sector
Healthcare
AI Confidence
85%
TMO
Thermo Fisher Scientific Inc.
NEUTRAL
Price
$513.98
Market Cap
$191.01B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
NVO
11.7
TMO
28.99
Forward P/E
NVO
12.31
TMO
18.94
P/B Ratio
NVO
6.17
TMO
3.62
P/S Ratio
NVO
0.61
TMO
4.29
EV/EBITDA
NVO
1.9
TMO
19.96

Profitability

Gross Margin
NVO
82.41%
TMO
41.08%
Operating Margin
NVO
44.53%
TMO
21.17%
Profit Margin
NVO
33.14%
TMO
15.05%
ROE
NVO
60.7%
TMO
13.02%
ROA
NVO
17.43%
TMO
5.03%

Growth

Revenue Growth
NVO
-7.6%
TMO
7.2%
Earnings Growth
NVO
-4.7%
TMO
9.3%

Financial Health

Debt/Equity
NVO
0.67
TMO
0.77
Current Ratio
NVO
0.8
TMO
1.89
Quick Ratio
NVO
0.54
TMO
1.36

Dividends

Dividend Yield
NVO
4.27%
TMO
0.34%
Payout Ratio
NVO
50.42%
TMO
9.7%

AI Verdict

NVO NEUTRAL

NVO presents a dichotomy between elite profitability and deteriorating growth. The Piotroski F-Score of 4/9 indicates stable but non-improving financial health, while the current price of $42.22 trades at a significant premium to both the Graham Number ($23.58) and Intrinsic Value ($25.27). Despite an exceptional ROE of 60.7% and strong margins, the company is facing negative YoY revenue (-7.6%) and earnings growth (-4.7%), resulting in a high PEG ratio of 4.53. The outlook is tempered by a bearish technical trend and liquidity concerns, though supported by a strong dividend profile and analyst 'Buy' ratings.

Strengths
Exceptional Return on Equity (ROE) of 60.70%
Elite Gross Margins at 82.41%
Attractive Dividend Yield of 4.27% with a sustainable 50.42% payout ratio
Risks
Negative YoY Revenue Growth (-7.60%) and Earnings Growth (-4.70%)
Poor liquidity indicated by a Current Ratio of 0.80 and Quick Ratio of 0.54
Significant overvaluation relative to defensive fair value (Graham Number: $23.58)
TMO NEUTRAL

TMO exhibits exceptional operational health with a Piotroski F-Score of 8/9, indicating strong financial stability and efficiency. However, the stock is currently trading at a significant premium, with a current price of $513.98 far exceeding both the Graham Number ($237.97) and the growth-based Intrinsic Value ($371.44). While analyst sentiment remains strongly bullish with a target of $647.38, this is countered by bearish insider activity and a negative technical trend. The outlook is balanced between high-quality fundamentals and a stretched valuation.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 8/9
Consistent track record of earnings beats over 25 quarters
Healthy liquidity with a current ratio of 1.89 and quick ratio of 1.36
Risks
Significant valuation gap between current price and deterministic fair value models
Bearish insider sentiment with over $56M in sales by the CEO and COO
Negative technical trend (0/100) indicating short-term price weakness

Compare Another Pair

NVO vs TMO: Head-to-Head Comparison

This page compares Novo Nordisk A/S (NVO) and Thermo Fisher Scientific Inc. (TMO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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