Financial Survey: Novartis (NYSE:NVS) and Karyopharm Therapeutics (NASDAQ:KPTI)

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

Profitability

This table compares Novartis and Karyopharm Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novartis	23.29%	38.56%	14.47%
Karyopharm Therapeutics	-153.28%	N/A	-145.18%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novartis	$54.53 billion	4.81	$13.98 billion	$6.63	20.74
Karyopharm Therapeutics	$146.07 million	0.26	-$196.04 million	($13.09)	-0.13

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Novartis and Karyopharm Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novartis	2	9	6	0	2.24
Karyopharm Therapeutics	1	2	3	1	2.57

Novartis currently has a consensus price target of $141.20, indicating a potential upside of 2.68%. Karyopharm Therapeutics has a consensus price target of $11.50, indicating a potential upside of 578.47%. Given Karyopharm Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Karyopharm Therapeutics is more favorable than Novartis.

Risk & Volatility

Novartis has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Karyopharm Therapeutics has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Insider and Institutional Ownership

13.1% of Novartis shares are held by institutional investors. Comparatively, 66.4% of Karyopharm Therapeutics shares are held by institutional investors. 0.0% of Novartis shares are held by company insiders. Comparatively, 1.7% of Karyopharm Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Novartis beats Karyopharm Therapeutics on 9 of the 15 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 Karyopharm Therapeutics

Karyopharm Therapeutics Inc., a commercial-stage pharmaceutical company, discovers, develops, and commercializes drugs directed against nuclear export for the treatment of cancer and other diseases in the United States. The company discovers, develops, and commercializes novel and small molecule Selective Inhibitor of Nuclear Export (SINE) compounds that inhibit the nuclear export protein exportin 1 (XPO1). Its lead compound, include XPOVIO in combination with bortezomib and dexamethasone for the treatment of adult patients with multiple myeloma; in combination with dexamethasone for the treatment of adult patients with relapsed or refractory multiple myeloma; and for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). It also developing Selinexor for treating hematological and solid tumor malignancies, including multiple myeloma, endometrial cancer, myelofibrosis, and DLBCL; and ELTANEXOR for treating Myelodysplastic Neoplasms, as well as verdinexor, KPT-9274, and IL-12 compounds. The company has license agreement with Menarini Group to develop and commercialize selinexor for human oncology indications; license agreement with Antengene Therapeutics Limited to develop and commercialize selinexor, eltanexor, and KPT-9274 for the treatment and/or prevention of human oncology indications, as well as verdinexor for the diagnosis, treatment, and/or prevention of human non-oncology indications; and distribution agreement for the commercialization of XPOVIO with FORUS Therapeutics Inc. Further, it has a collaboration with Bristol Myers Squibb company to evaluate novel cereblon E3 ligase modulator agent mezigdomide in combination with Selinexor in patients with relapsed/refractory multiple myeloma. Karyopharm Therapeutics Inc. was incorporated in 2008 and is headquartered in Newton, Massachusetts.