WallStSmart

Axsome Therapeutics Inc (AXSM)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 7200% more annual revenue ($56.69B vs $776.57M). NVS leads profitability with a 22.5% profit margin vs -24.7%. NVS earns a higher WallStSmart Score of 51/100 (C-).

AXSM

Avoid

31

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: -2.12

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXSMUndervalued (+51.6%)

Margin of Safety

+51.6%

Fair Value

$385.01

Current Price

$220.75

$164.26 discount

UndervaluedFair: $385.01Overvalued
NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXSM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

Areas to Watch

AXSM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
138.8x2/10

Trading at 138.8x book value

Return on EquityProfitability
-345.0%2/10

ROE of -345.0% — below average capital efficiency

Free Cash FlowQuality
$-33.07M2/10

Negative free cash flow — burning cash

NVS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.183/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AXSM

The strongest argument for AXSM centers on Revenue Growth. Revenue growth of 45.5% demonstrates continued momentum.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 22.5% and operating margin at 34.6%.

Bear Case : AXSM

The primary concerns for AXSM are EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 2.63 is elevated, increasing financial risk.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Key Dynamics to Monitor

AXSM profiles as a hypergrowth stock while NVS is a value play — different risk/reward profiles.

AXSM carries more volatility with a beta of 0.71 — expect wider price swings.

AXSM is growing revenue faster at 45.5% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Bottom Line

NVS scores higher overall (51/100 vs 31/100), backed by strong 22.5% margins. AXSM offers better value entry with a 51.6% 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.

Axsome Therapeutics Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Axsome Therapeutics, Inc., a biopharmaceutical company, is dedicated to developing new therapies for central nervous system (CNS) disorders in the United States. The company is headquartered in New York, New York.

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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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