WallStSmart

Avanos Medical Inc (AVNS)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 7969% more annual revenue ($56.58B vs $701.20M). NVS leads profitability with a 23.9% profit margin vs -10.4%. NVS earns a higher WallStSmart Score of 51/100 (C-).

AVNS

Avoid

34

out of 100

Grade: F

Growth: 3.3Profit: 3.0Value: 6.7Quality: 5.0

NVS

Buy

51

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVNSUndervalued (+76.5%)

Margin of Safety

+76.5%

Fair Value

$64.45

Current Price

$24.64

$39.81 discount

UndervaluedFair: $64.45Overvalued
NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVNS1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

Areas to Watch

AVNS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.7%4/10

0.7% revenue growth

Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.0%3/10

Operating margin of 2.0%

Return on EquityProfitability
-9.1%2/10

ROE of -9.1% — below average capital efficiency

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AVNS

The strongest argument for AVNS centers on Price/Book.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.

Bear Case : AVNS

The primary concerns for AVNS are Revenue Growth, Market Cap, Operating Margin.

Bear Case : NVS

The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.

Key Dynamics to Monitor

AVNS profiles as a turnaround stock while NVS is a declining play — different risk/reward profiles.

AVNS carries more volatility with a beta of 1.05 — expect wider price swings.

AVNS is growing revenue faster at 0.7% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 34/100), backed by strong 23.9% margins. AVNS offers better value entry with a 76.5% 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.

Avanos Medical Inc

HEALTHCARE · MEDICAL DEVICES · USA

Avanos Medical, Inc. is a medical technology company focused on providing medical device solutions to improve the quality of life for patients in North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The company is headquartered in Alpharetta, Georgia.

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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