AbbVie Inc (ABBV)vsNovartis AG ADR (NVS)
ABBV
AbbVie Inc
$208.34
-1.01%
HEALTHCARE · Cap: $391.56B
NVS
Novartis AG ADR
$148.19
-1.08%
HEALTHCARE · Cap: $296.61B
Smart Verdict
WallStSmart Research — data-driven comparison
AbbVie Inc generates 8% more annual revenue ($61.16B vs $56.67B). NVS leads profitability with a 24.7% profit margin vs 6.9%. ABBV appears more attractively valued with a PEG of 0.53. ABBV earns a higher WallStSmart Score of 63/100 (C+).
ABBV
Buy63
out of 100
Grade: C+
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1179.3%
Fair Value
$16.12
Current Price
$208.34
$192.22 premium
Margin of Safety
-243.7%
Fair Value
$48.62
Current Price
$148.19
$99.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 62 in profit
Strong operational efficiency at 34.1%
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 4.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Areas to Watch
6.9% margin — thin
Premium valuation, high expectations priced in
Earnings declined 88.7%
Distress zone — elevated risk
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ABBV
The strongest argument for ABBV centers on Market Cap, Return on Equity, Operating Margin. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.
Bear Case : ABBV
The primary concerns for ABBV are Profit Margin, P/E Ratio, EPS Growth. A P/E of 93.4x leaves little room for execution misses.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.50 — expect wider price swings.
ABBV is growing revenue faster at 10.0% — sustainability is the question.
ABBV generates stronger free cash flow (4.9B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ABBV scores higher overall (63/100 vs 51/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AbbVie Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
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