Novozymes A/S

A middle-of-the-pack grower that is slowing. Earnings are outgrowing revenue, a sign of improving margins and operating leverage. Quality of growth is high even if the top line is moderate. The strongest point: revenue grew 25%/yr over the last 3 years, ahead of 80% of companies worldwide. The one thing to watch: forward revenue growth is only about average.

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case. The strongest point: it's up 13% over the past year, now sitting right at its 52-week high.

Valuation is a weak point here. Multiples look stretched and income yield is weak versus peers. This profile is a poor fit for value strategies, so growth or quality angles may work better. The strongest point: its forward P/E of 26x is 22% below that median, and its three-year P/E of 23x is 31% below. The one thing to watch: the earnings multiple is high.

A middle-of-the-pack business on quality. Margins, returns and balance sheet sit around the market average. Workable, but not a standout on business quality. The strongest point: best on EBITDA margin at 37%, better than 80% of companies worldwide. The one thing to watch: returns on capital are weak.