WallStSmart

Apellis Pharmaceuticals Inc (APLS)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 5546% more annual revenue ($56.67B vs $1.00B). NVS leads profitability with a 24.7% profit margin vs 2.2%. NVS trades at a lower P/E of 20.3x. NVS earns a higher WallStSmart Score of 51/100 (C-).

APLS

Avoid

27

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 5/9Altman Z: -2.39

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APLSUndervalued (+88.4%)

Margin of Safety

+88.4%

Fair Value

$193.03

Current Price

$40.95

$152.08 discount

UndervaluedFair: $193.03Overvalued
NVSSignificantly Overvalued (-52.2%)

Margin of Safety

-52.2%

Fair Value

$109.78

Current Price

$147.85

$38.07 premium

UndervaluedFair: $109.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APLS0 strengths · Avg: 0/10

No standout strengths identified

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$280.79B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

Areas to Watch

APLS4 concerns · Avg: 3.5/10
Price/BookValuation
14.0x4/10

Trading at 14.0x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : APLS

APLS has a balanced fundamental profile.

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 : APLS

The primary concerns for APLS are Price/Book, EPS Growth, Return on Equity. A P/E of 227.5x leaves little room for execution misses. Thin 2.2% margins leave little buffer for downturns.

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 0.52 — expect wider price swings.

NVS is growing revenue faster at 2.2% — sustainability is the question.

NVS generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 27/100), backed by strong 24.7% margins. APLS offers better value entry with a 88.4% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Apellis Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Apellis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic compounds through inhibition of the complement system for autoimmune and inflammatory diseases. The company is headquartered in Waltham, Massachusetts.

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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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