Critical Contrast: Janone (NASDAQ:ALTS) vs. Novartis (NYSE:NVS)

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

Profitability

This table compares Novartis and Janone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novartis	35.96%	34.80%	15.13%
Janone	N/A	-2,940.01%	-39.81%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novartis	$49.94 billion	4.03	$14.85 billion	$8.61	11.42
Janone	$7.11 million	8.53	-$7.81 million	N/A	N/A

Novartis has higher revenue and earnings than Janone.

Institutional and Insider Ownership

13.1% of Novartis shares are held by institutional investors. Comparatively, 6.3% of Janone shares are held by institutional investors. 0.0% of Novartis shares are held by company insiders. Comparatively, 4.9% of Janone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Novartis pays an annual dividend of $2.43 per share and has a dividend yield of 2.5%. Janone pays an annual dividend of $1.22 per share and has a dividend yield of 28.3%. Novartis pays out 28.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Novartis and Janone, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novartis	2	7	0	0	1.78
Janone	0	0	0	0	0.00

Novartis currently has a consensus price target of $121.50, indicating a potential upside of 23.54%. Given Novartis’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Novartis is more favorable than Janone.

Risk & Volatility

Novartis has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Janone has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.

Summary

Novartis beats Janone on 8 of the 13 factors compared between the two stocks.

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.

About Janone

JanOne Inc., a clinical-stage biopharmaceutical company, focuses on identifying, acquiring, licensing, developing, partnering, and commercializing novel, non-opioid, and non-addictive therapies to address the unmet medical need for the treatment of pain and addiction. It operates through three segments: Biotechnology, Recycling, and Technology. The company’s lead product candidate is JAN101, a patented oral and sustained release pharmaceutical composition of sodium nitrite that targets poor blood flow to the extremities in patients with diabetes or peripheral artery disease to treat pain. It also provides turnkey appliance recycling and replacement services for utilities and other sponsors of energy efficiency programs; and designs, develops, and sells cellular transceiver modules and associated wireless services. The company was formerly known as Appliance Recycling Centers of America, Inc. and changed its name to JanOne Inc. in September 2019. JanOne Inc. was founded in 1976 and is headquartered in Las Vegas, Nevada.