Head to Head Analysis: Novo Nordisk A/S (NYSE:NVO) vs. Hepion Pharmaceuticals (NASDAQ:HEPA)

Novo Nordisk A/S (NYSE:NVO) and Hepion Pharmaceuticals (NASDAQ:HEPA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Institutional and Insider Ownership

11.5% of Novo Nordisk A/S shares are held by institutional investors. Comparatively, 17.2% of Hepion Pharmaceuticals shares are held by institutional investors. 0.1% of Novo Nordisk A/S shares are held by company insiders. Comparatively, 2.0% of Hepion Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Novo Nordisk A/S and Hepion Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novo Nordisk A/S	35.03%	86.32%	27.42%
Hepion Pharmaceuticals	N/A	-812.56%	-207.31%

Risk and Volatility

Novo Nordisk A/S has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Hepion Pharmaceuticals has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Valuation & Earnings

This table compares Novo Nordisk A/S and Hepion Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novo Nordisk A/S	$270.58 billion	1.76	$12.15 billion	$3.09	34.29
Hepion Pharmaceuticals	N/A	N/A	-$48.93 million	($4.38)	-0.13

Novo Nordisk A/S has higher revenue and earnings than Hepion Pharmaceuticals. Hepion Pharmaceuticals is trading at a lower price-to-earnings ratio than Novo Nordisk A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Novo Nordisk A/S and Hepion Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novo Nordisk A/S	0	1	5	1	3.00
Hepion Pharmaceuticals	0	0	0	0	0.00

Novo Nordisk A/S currently has a consensus price target of $150.40, suggesting a potential upside of 41.94%. Given Novo Nordisk A/S’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Novo Nordisk A/S is more favorable than Hepion Pharmaceuticals.

Summary

Novo Nordisk A/S beats Hepion Pharmaceuticals on 11 of the 14 factors compared between the two stocks.

About Novo Nordisk A/S

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with Aspen Pharmaceuticals to produce insulin products; and with Korro Bio, Inc. for the discovery and development of new genetic medicines to treat cardiometabolic diseases. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.

About Hepion Pharmaceuticals

Hepion Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development of drug therapy treatment for chronic liver diseases in the United States. It develops Rencofilstat, a cyclophilin inhibitor that has completed Phase 2a clinical trials to target multiple pathologic pathways involved in the progression of liver disease; and is in phase 2 clinical development for the treatment of non-alcoholic steatohepatitis (NASH), as well as preclinical studies of Rencofilstat shows reduction in liver fibrosis, liver inflammation, liver tumor burden, and titers of HBV, HCV, HDV, and HIV-1, and has demonstrated antiviral activities for hepatitis B, C, and D viruses through several mechanisms. The company was formerly known as ContraVir Pharmaceuticals, Inc. and changed its name to Hepion Pharmaceuticals, Inc. in July 2019. Hepion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Edison, New Jersey.