Novo Nordisk or Pfizer: Which Healthcare Giant Is the Better Bet?

Novo Nordisk NVO and Pfizer PFE are pharmaceutical giants based in Denmark and the United States, respectively, with strong leadership positions in distinct therapeutic areas. NVO is widely recognized as the market leader in the GLP-1 space, marketing its semaglutide drugs under brand names Ozempic (pre-filled pen) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection) for chronic weight management.Pfizer, traditionally strongest in oncology, where the segment accounts for nearly a third of its revenues, also maintains solid depth across inflammation, immunology, rare diseases and vaccines. But a recent strategic shift has brought Pfizer into much closer comparison with Novo Nordisk, as the company re-entered the obesity arena after winning a high-profile bidding war against NVO for the acquisition of Metsera, ultimately sealing the deal in mid-November.The Metsera acquisition puts Pfizer back on the offensive in the lucrative obesity space after it scrapped the development of danuglipron, a weight-loss pill, earlier this year. With both companies now positioned in obesity — one defending its lead and the other mounting a fresh challenge — NVO and PFE have become increasingly comparable from an investment standpoint.But which stock presents a better investment opportunity right now? Let’s dive into their fundamentals, growth outlook and potential challenges to make a well-informed comparison.The Case for NVONovo Nordisk has achieved tremendous success in the cardiometabolic treatment space, all thanks to its semaglutide medicines, Ozempic, Rybelsus and Wegovy, which are its primary top-line drivers. As of September 2025-end, Novo Nordisk remained the market leader with a total GLP-1 volume market share of 59% globally, across diabetes and obesity care.NVO has been investing heavily to expand its manufacturing capacity as part of its strategic move to strengthen its diabetes and obesity care market leadership for its GLP-1 products.Novo Nordisk is pursuing new indications for its semaglutide drugs, including cardiovascular (CV) and other indications. Recently, Rybelsus became the first oral therapy approved in the United States to lower the risk of major adverse CV events in high-risk T2D patients, regardless of prior CV history. Wegovy’s label includes cardiovascular, HFpEF and osteoarthritis indications, while Ozempic remains the only GLP-1 approved to slow kidney disease and reduce CV death in patients with diabetes.The FDA is also reviewing NVO’s application for a 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, with a decision expected by year-end. Higher-dose Wegovy injections are also under review in the United States and EU, and the company is seeking to expand Ozempic’s label to include peripheral artery disease.Novo Nordisk is advancing its next-generation obesity pipeline. Its most advanced program, CagriSema, a follow-up drug to Wegovy, met study endpoints but underperformed on weight loss outcomes in late-stage studies. Meanwhile, its mid-stage asset, amycretin, recently showed strong weight-loss efficacy in a phase II study and is slated to enter phase III in 2026. The company has bolstered its pipeline through several major collaborations and acquisition deals.Beyond GLP-1s, NVO is building its Rare Disease franchise, advancing Mim8 in hemophilia A, and securing both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors. Meanwhile, the FDA has granted accelerated approval for Wegovy in treating MASH with fibrosis. Novo Nordisk and rival Eli Lilly LLY signed a drug pricing agreement with the Trump administration earlier this month, offering to cut prices of their respective GLP-1 medicines for a three-year exemption from tariffs on pharmaceutical imports.However, Novo Nordisk has been facing rising competitive and operational headwinds. Weaker-than-expected sales of Ozempic and Wegovy led to disappointing third-quarter results, amid intensifying competition from Eli Lilly’s tirzepatide-based drugs, Mounjaro (T2D) and Zepbound (obesity), along with rising use of compounded semaglutide in the United States — factors that also drove its July guidance cut. Following third-quarter results, Novo Nordisk further trimmed its 2025 sales and operating profit outlook due to pricing pressure, intensifying GLP-1 competition and foreign exchange headwinds. To streamline operations, NVO also announced a restructuring program, including job cuts, aimed at delivering about DKK 8 billion in annual savings by 2026.The Case for PFEPfizer is one of the largest and most successful drugmakers in oncology. The addition of Seagen in 2023 strengthened its position in oncology. Its oncology revenues have risen 7% year to date, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev.Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen. Pfizer's recently launched and acquired products rose approximately 9% operationally in the nine months of 2025, with the momentum expected to continue.Continued growth of Pfizer’s diversified portfolio of drugs, particularly oncology, should support top-line growth in 2026.Its significant cost reduction initiatives and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. The company’s dividend yield stands at around 7%, which is impressive.Pfizer’s new products/late-stage pipeline candidates and newly acquired products position it strongly for operational growth in 2025 and beyond. It expects the 2025 to 2030 revenue CAGR to be approximately 6%.Pfizer is also trying to expand its pipeline through acquisitions. Following a heated battle, with PFE and NVO raising their offer prices for Metsera back and forth, Pfizer eventually acquired Metsera, a New York-based biotech, for around $10 billion. Metsera is developing innovative therapies to treat obesity and cardiometabolic diseases, which are expected to generate billions of dollars in peak sales. The acquisition has added a portfolio of promising, clinical-stage incretin and amylin programs to Pfizer’s pipeline. Metsera’s lead pipeline candidate is MET-097i, a weekly and monthly injectable GLP-1 RA about to begin phase III development. It is also developing an ultra-long-acting amylin analog, MET-233i, and an oral GLP-1 RA candidate in phase I. Additional preclinical, nutrient-stimulated hormone therapeutics were also added to Pfizer’s pipeline.Pfizer also signed a drug pricing agreement with the Trump administration in September. It has offered to cut prescription drug prices and boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports.However, Pfizer too faces its share of challenges. It is seeing a softness in sales of its COVID products, Comirnaty and Paxlovid, due to lower vaccination rates and COVID infection rates.Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations. The company expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the Inflation Reduction Act (IRA), which took effect in the first quarter of 2025 and is hurting Pfizer’s revenues. Higher-priced drugs, including Eliquis, Vyndaqel, Ibrance, Xtandi and Xeljanz, are expected to be most affected by the IRA.How Do Estimates Compare for NVO & PFE?The Zacks Consensus Estimate for Novo Nordisk’s 2025 sales and earnings per share (EPS) implies a year-over-year increase of around 14% and 9%, respectively. EPS estimates for both 2025 and 2026 have been trending downward over the past 60 days.NVO Estimate MovementImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Pfizer’s 2025 sales and EPS implies a year-over-year decrease of 1.1% and an increase of 1%, respectively. PFE’s EPS estimates for both 2025 and 2026 have also been trending downward over the past 60 days.PFE Estimate MovementImage Source: Zacks Investment ResearchPrice Performance and Valuation of NVO & PFEYear to date, shares of NVO have plummeted 43.4%, while those of PFE have lost 3.1%. In comparison, the industry has gained 19%, as seen in the chart below.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Novo Nordisk is more expensive than Pfizer, going by the price/earnings ratio. NVO’s shares currently trade at 13.36 times forward earnings, higher than 8.2 for PFE.Image Source: Zacks Investment ResearchNVO vs. PFE: Which Stock Holds the Edge?Novo Nordisk and Pfizer carry a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.However, NVO has recently faced serious market turmoil, navigating several near-term challenges, including intensifying competition from Eli Lilly, battling compounded semaglutide alternatives in the market, guidance cuts and leadership transitions. These factors have weighed on investor sentiment, resulting in a steep decline in share value over the past year.In contrast, despite stock volatility, Pfizer offers an attractive near-term investment case as post-COVID volatility subsides and core revenues strengthen. Its oncology franchise, bolstered by Seagen, continues to grow, while new and acquired products add momentum. The $10 billion Metsera deal also returns Pfizer to the fast-growing obesity market with promising incretin and amylin programs. With $7.7 billion in planned cost savings by 2027, a solid late-stage pipeline and a compelling ~7% dividend yield, Pfizer stands out as a cheaper, more stable option than NVO for investors seeking EPS growth and steady performance.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks