WallStSmart

Bristol-Myers Squibb Company (BMY)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 15% more annual revenue ($56.69B vs $49.19B). NVS leads profitability with a 22.5% profit margin vs 18.9%. BMY appears more attractively valued with a PEG of 2.41. BMY earns a higher WallStSmart Score of 70/100 (B).

BMY

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 1.44

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

BMYUndervalued (+17.5%)

Margin of Safety

+17.5%

Fair Value

$72.68

Current Price

$63.64

$9.04 discount

UndervaluedFair: $72.68Overvalued
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

BMY6 strengths · Avg: 9.2/10
Return on EquityProfitability
41.6%10/10

Every $100 of equity generates 42 in profit

Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

EPS GrowthGrowth
153.1%10/10

Earnings expanding 153.1% YoY

Market CapQuality
$130.00B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.09B8/10

Generating 3.1B in free cash flow

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

BMY3 concerns · Avg: 3.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Debt/EquityHealth
1.933/10

Elevated debt levels

Altman Z-ScoreHealth
1.442/10

Distress zone — elevated risk

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 : BMY

The strongest argument for BMY centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 18.9% and operating margin at 34.4%.

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 : BMY

The primary concerns for BMY are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.93 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

BMY profiles as a mature stock while NVS is a value play — different risk/reward profiles.

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

BMY is growing revenue faster at 5.7% — sustainability is the question.

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

Bottom Line

BMY scores higher overall (70/100 vs 51/100), backed by strong 18.9% margins. Both earn "Strong 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.

Bristol-Myers Squibb Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Bristol Myers Squibb (BMS) is an American multinational pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.

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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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