NOVOZYMES A/S/S (NVZMY) vs. bluebird bio (BLUE) Critical Analysis

NOVOZYMES A/S/S (OTCMKTS:NVZMY) and bluebird bio (NASDAQ:BLUE) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares NOVOZYMES A/S/S and bluebird bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NOVOZYMES A/S/S 22.14% 29.64% 16.60%
bluebird bio -1,018.02% -32.15% -27.03%

Analyst Ratings

This is a summary of recent ratings and recommmendations for NOVOZYMES A/S/S and bluebird bio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NOVOZYMES A/S/S 1 1 2 0 2.25
bluebird bio 0 8 13 1 2.68

bluebird bio has a consensus target price of $170.26, suggesting a potential upside of 19.06%. Given bluebird bio’s stronger consensus rating and higher probable upside, analysts clearly believe bluebird bio is more favorable than NOVOZYMES A/S/S.

Institutional and Insider Ownership

0.2% of NOVOZYMES A/S/S shares are owned by institutional investors. 3.0% of bluebird bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NOVOZYMES A/S/S and bluebird bio’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NOVOZYMES A/S/S $2.28 billion 5.91 $511.29 million $1.75 25.92
bluebird bio $54.58 million 144.41 -$555.63 million ($10.68) -13.39

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

Dividends

NOVOZYMES A/S/S pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. bluebird bio does not pay a dividend. NOVOZYMES A/S/S pays out 28.6% of its earnings in the form of a dividend.

Risk & Volatility

NOVOZYMES A/S/S has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, bluebird bio has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500.

Summary

NOVOZYMES A/S/S beats bluebird bio on 9 of the 17 factors compared between the two stocks.

About NOVOZYMES A/S/S

Novozymes A/S produces and sells industrial enzymes and microorganisms worldwide. The company offers agriculture solutions, including crop protection, and animal health and nutrition solutions; fermentation, lignecellulosic hydrolysis, liquefaction, process enhancement, and saccharifaction solutions for bioenergy; baking, beverages, dairy, and protein ingredients for the food and beverage industry; and laundry, dishwashing, hand washing, and cleaning solutions for the household care industry. It also provides wastewater solutions, such as additives, biogas production, industrial bio cleaning, compound removal, odor control, and system start-up solutions; and textile solutions comprising bioscouring, bleach clean-up, desizing, denim finishing and abrasion, and biopolishing solutions. In addition, the company offers forest products that include bleach boosting, deinking, fiber modification, effluent control, pitch and stickies control, and starch modification products; and leather solutions, which comprise biopreparation, degreasing, and re-bating. Further, it provides pharmaceutical solutions, including lipases, immobilized lipases, and proteases for biocatalysis; and rtrypsin for cell culture. Novozymes A/S has a strategic collaboration with Boehringer Ingelheim Animal Health for the research and development, production, marketing, and sale of a portfolio of probiotic products. The company was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

About bluebird bio

bluebird bio, Inc., a clinical-stage biotechnology company, focuses on developing transformative gene therapies for severe genetic diseases and cancer. Its product candidates in severe genetic diseases include LentiGlobin, which is in various clinical studies for the treatment of transfusion-dependent ß-thalassemia and severe sickle cell disease; and Lenti-D that is in Phase II/III clinical trials for the treatment of cerebral adrenoleukodystrophy, a rare hereditary neurological disorder. The company's product candidates in oncology include bb2121 and bb21217, which are chimeric antigen receptor T (CAR T) cell product candidates for the treatment of multiple myeloma. It has a strategic collaboration with Celgene Corporation to discover, develop, and commercialize disease-altering gene therapies in oncology; and Regeneron Pharmaceuticals, Inc. to discover, develop, and commercialize various immune cell therapies for cancer. The company also has collaborations with Medigene AG to discover T cell receptor (TCR) product candidates in the field of cancer; Gritstone Oncology, Inc. to discover TCR product candidates in the field of cancer; and TC BioPharm Limited to research and develop gamma delta CAR T cells directed at hematologic and solid tumor targets. The company was formerly known as Genetix Pharmaceuticals, Inc., and changed its name to bluebird bio, Inc. in September 2010. bluebird bio, Inc. was founded in 1992 and is headquartered in Cambridge, Massachusetts.

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