Novo Nordisk and AstraZeneca: A Comparative Analysis

Novo Nordisk and AstraZeneca face challenges despite strong financials. AstraZeneca's stock is down 2% while Novo Nordisk sees a 14% decline. Experts weigh which may recover faster.

Date: 04-01-2025

AI Rating: 6

Market Performance Overview
AstraZeneca's shares have decreased by 2% over the last twelve months, while Novo Nordisk has experienced a more significant decline of 14%. This marks a troubling trend for both companies, even as they report generally strong financial results.

Earnings Analysis
AstraZeneca's earnings per share (EPS) are lower despite higher quarterly revenues. This indicates that while the company is generating more sales, it is not translating into increased profitability per share, which could concern investors regarding the company's ability to generate value in the future.

Revenue Growth
Novo Nordisk has shown a share increase in the diabetes care market from 33.3% to 33.9% year over year, and a rise in its GLP-1 drug space share from 54.4% to 55.6%. This is indicative of healthy revenue growth, especially with projections that the weight loss market will expand significantly. AstraZeneca, on the other hand, has had disruptions in its revenue growth due to COVID-19 product sales, but it maintains a diversified pipeline that could assist in future growth.

Risks and Challenges
AstraZeneca is currently facing an insurance fraud investigation in China and issues with its president being arrested, which introduces uncertainty in its sales and could impact its stock negatively. Conversely, while Novo Nordisk's recent drug testing results for its pipeline candidate CagriSema were below management's expectations, the overall prospect remains positive due to its strong core offerings.

Conclusion
In conclusion, despite recent challenges, Novo Nordisk seems positioned for potential revenue growth, while AstraZeneca's uncertainties may hinder its performance in the near term. Investors may favor Novo Nordisk for steady long-term returns.

Stocks: NVO AZN