WallStSmart

Analog Devices Inc (ADI)vsGlaxoSmithKline PLC ADR (GSK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GlaxoSmithKline PLC ADR generates 178% more annual revenue ($32.67B vs $11.76B). ADI leads profitability with a 23.0% profit margin vs 17.5%. GSK appears more attractively valued with a PEG of 0.50. ADI earns a higher WallStSmart Score of 75/100 (B).

ADI

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 4.7Quality: 5.0

GSK

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADISignificantly Overvalued (-25.8%)

Margin of Safety

-25.8%

Fair Value

$256.00

Current Price

$322.03

$66.03 premium

UndervaluedFair: $256.00Overvalued
GSKUndervalued (+66.0%)

Margin of Safety

+66.0%

Fair Value

$172.22

Current Price

$54.71

$117.51 discount

UndervaluedFair: $172.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADI6 strengths · Avg: 9.3/10
Operating MarginProfitability
33.1%10/10

Strong operational efficiency at 33.1%

Revenue GrowthGrowth
30.4%10/10

Revenue surging 30.4% year-over-year

EPS GrowthGrowth
116.7%10/10

Earnings expanding 116.7% YoY

Market CapQuality
$157.12B9/10

Large-cap with strong market position

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

PEG RatioValuation
0.778/10

Growing faster than its price suggests

GSK6 strengths · Avg: 9.2/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
43.3%10/10

Every $100 of equity generates 43 in profit

EPS GrowthGrowth
54.7%10/10

Earnings expanding 54.7% YoY

Market CapQuality
$104.12B9/10

Large-cap with strong market position

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.48B8/10

Generating 1.5B in free cash flow

Areas to Watch

ADI2 concerns · Avg: 2.5/10
Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

P/E RatioValuation
58.8x2/10

Premium valuation, high expectations priced in

GSK3 concerns · Avg: 3.0/10
Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADI

The strongest argument for ADI centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 33.1%. Revenue growth of 30.4% demonstrates continued momentum.

Bull Case : GSK

The strongest argument for GSK centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 17.5% and operating margin at 18.9%. PEG of 0.50 suggests the stock is reasonably priced for its growth.

Bear Case : ADI

The primary concerns for ADI are Return on Equity, P/E Ratio. A P/E of 58.8x leaves little room for execution misses.

Bear Case : GSK

The primary concerns for GSK are Price/Book, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

ADI profiles as a growth stock while GSK is a mature play — different risk/reward profiles.

ADI carries more volatility with a beta of 1.02 — expect wider price swings.

ADI is growing revenue faster at 30.4% — sustainability is the question.

GSK generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

ADI scores higher overall (75/100 vs 70/100), backed by strong 23.0% margins and 30.4% revenue growth. GSK offers better value entry with a 66.0% margin of safety. Both earn "Strong Buy" and "Strong 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.

Analog Devices Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

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