If I had to choose today, I'd lean toward Novo Nordisk $NOVO B (-1.05%)
for maximum upside potential, but the choice depends entirely on your risk tolerance and investment timeline. Let me break down why these two companies are in completely different phases and what each offers.

Financial Metrics Comparison: Novo Nordisk $NOVO B (-1.05%) vs Nike $NKE (-2.43%) .

The Valuation Divide

The most striking difference between these two stocks is their valuation positioning. Novo Nordisk is trading at a P/E ratio of 12.66x while Nike commands 32.25x—a 2.5x difference. Novo Nordisk's current price of $49.13 is significantly undervalued according to DCF analysis, with conservative estimates suggesting fair value at $77.40 (57% upside) and more bullish valuations reaching $163.92 (234% upside). In contrast, Nike at $62.89 is essentially fairly valued according to its DCF fair value of $62.84, making it not particularly attractive from a pure valuation standpoint.

Business Quality & Scale

Novo Nordisk is the larger business by revenue at $290.4 billion versus Nike's $51.4 billion. More importantly, Novo generates $101 billion in net income compared to Nike's modest $5.7 billion—an 18x difference in absolute profitability. Novo's operating margin of 44.2% is extraordinary, reflecting the high-margin nature of pharmaceutical products like Ozempic and Wegovy. Nike's 12.3% operating margin reveals the challenges facing the consumer discretionary business facing tariffs and competitive pressures.

Growth Prospects

Here's where the narratives diverge significantly. Novo Nordisk delivered 25.2% revenue growth in 2024, but management cut full-year 2025 guidance to 8-14% growth (down from 13-21%) due to intensifying competition from Eli Lilly's superior tirzepatide drugs and compounded semaglutide alternatives. Despite market share erosion, Wegovy sales still surged 67% in Q2 2025, showing the underlying market remains enormous.

Nike is in the early stages of a turnaround under new CEO Elliott Hill. While facing mid-single digit revenue declines in the near term, analysts see a potential recovery catalyst from the 2026 FIFA World Cup, which could generate an additional $1.3 billion in sales. Analysts also highlight improved product innovation with 26 new products coming in 2026 and optimized running shoe offerings.

The Risk-Reward Profile

Novo Nordisk risks: The GLP-1 market is being reshaped by superior competitors. Eli Lilly's tirzepatide is demonstrably more effective for weight loss than Novo's semaglutide, and Lilly is winning market share. Additionally, the proliferation of compounded (unregulated) versions threatens pricing power. However, the obesity care market is projected to reach $150 billion by the early 2030s, offering enormous runway even for second-place competitors.

Nike risks: The company faces $1 billion in tariff headwinds that it's managing through production shifts and modest price increases. Consumer discretionary spending is under pressure. However, Nike has 150+ years of brand heritage, and historically, turnarounds in apparel/footwear tend to create outsized returns once momentum shifts.

Income Considerations

Nike offers a 2.48% dividend yield versus Novo's 0.37%, which matters if you need income. However, Novo's lower payout reflects its growth stage in the obesity drug market.

My Assessment

For growth investors with 3+ year horizon: Novo Nordisk offers substantially better risk-reward. Even if fair value falls to the conservative $77.40 estimate, you're looking at 57% upside, and multiple expansion could drive it higher as competitive dynamics stabilize. The pharmaceutical giant will likely defend its market position despite Lilly's advantages.

For value plus recovery upside: Nike could work if you believe in Elliott Hill's turnaround thesis and want exposure to World Cup tailwinds. Analysts collectively see 31% upside to $82.54 over 12 months, though this assumes execution on the turnaround.

The Choice: Novo Nordisk is the obvious selection if you want better valuation, superior profitability, and significant upside. You're buying a temporary weakness in an enormously profitable franchise facing manageable competitive headwinds. Nike is the more uncertain turnaround story, though it offers slightly more downside protection given its valuation is fair rather than deeply discounted.

The key catalyst to watch for Novo is their Q3 2025 earnings on November 5th, where Medicare pricing negotiations for semaglutide could unlock new obesity coverage opportunities.

My portfolio showed a decline of -2.16% this month. I took advantage of dips in $HAUTO (-1.28%) and $BNP (-1.29%) to add to my positions. I’m invested in $CMCSA (-2.28%) and have opened positions there because they are shifting their focus towards entertainment and streaming, which I believe is a big part of the future.

The best performers this month were:

Qualcomm $QCOM (+0.35%)

CN Railway $CNR (+0.87%)

CIBC $CM (+1.14%)

Chevron $CVX (-1.94%)

On the downside:

Höegh Autoliners $HAUTO (-1.28%)

Novo Nordisk $NOVO B (-1.05%)

UnitedHealth Group $UNH (-2.33%)

Bitcoin $BTC (-2.54%)

Ethereum $ETH (-6.55%)

Since Novo Nordisk and UnitedHealth are my largest positions, their weak performance had a significant impact on my portfolio.

It was a cautious month with mixed results. I’m staying patient and ready for better opportunities ahead.

Hello getquin community,

In the past few days, I’ve restructured my portfolio, focusing on companies with strong fundamentals, active buyback programs, and long-term strategies aimed at sustainable growth.

Here’s a breakdown of my latest moves 👇

💊 Novo Nordisk $NOVO B (-1.05%)

Following the recent market drop, I still see Novo Nordisk as an excellent company. Its restructuring plan focuses on cost reduction, revenue stability, and a lower debt level compared to 2024. The ongoing buyback program reinforces confidence in the company’s long-term outlook.

💳 PayPal $PYPL (-1.22%)

I increased my position after a strong quarterly report and the announcement of new strategic partnerships. I expect substantial revenue growth in the coming years. The company maintains a very low debt level and has a solid buyback plan in place.

💉 Merck & Co. $MRK (-3.3%)

I’ve also increased my stake here. Earnings are growing, margins remain strong, and cash flow is excellent. Merck continues to support shareholder value through its buyback program and disciplined financial management.

📶 Verizon $VZ (-0.42%)

I added to my position despite the recent drop, which I see as unjustified given the solid quarterly results. The dividend yield is attractive and sustainable. Debt remains high relative to equity, but it’s steadily declining. The only downside is the continuous, even if small, issuance of new shares.

🎬 Comcast $CMCSA (-2.28%)

I increased my holdings after the stock fell despite a quarterly report that was broadly in line with expectations. At current prices, Comcast remains a strong company with sustainable dividends, declining debt, solid cash flow, and an ongoing buyback program.

💻 TeamViewer $TMV (-1.57%)

After the sharp correction, I consider the stock attractive at current levels. The company is investing in AI, has strong margins, and maintains a positive cash flow. Debt levels are high but decreasing, while profits have shown excellent growth this year.

🌞 Solaria Energía $SLR (+0.42%)

Cash flow is currently negative due to heavy investments, but these are starting to bear fruit. The company targets a +60% increase in operating margin compared to 2024, with further growth expected into 2026.

Instead, what do you think about these companies?