WallStSmart

Charles River Laboratories (CRL)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1309% more annual revenue ($56.58B vs $4.02B). NVS leads profitability with a 23.9% profit margin vs -3.6%. CRL appears more attractively valued with a PEG of 0.13. NVS earns a higher WallStSmart Score of 51/100 (C-).

CRL

Hold

39

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 7.7Quality: 4.8
Piotroski: 3/9Altman Z: 1.68

NVS

Buy

51

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRLUndervalued (+21.0%)

Margin of Safety

+21.0%

Fair Value

$210.15

Current Price

$177.62

$32.53 discount

UndervaluedFair: $210.15Overvalued
NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$146.03

$35.91 premium

UndervaluedFair: $110.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRL2 strengths · Avg: 9.0/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$277.42B10/10

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

CRL4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-4.2%2/10

ROE of -4.2% — below average capital efficiency

NVS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.592/10

Expensive relative to growth rate

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 : CRL

The strongest argument for CRL centers on PEG Ratio, Price/Book. PEG of 0.13 suggests the stock is reasonably priced for its growth.

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 : CRL

The primary concerns for CRL are Altman Z-Score, Operating Margin, Piotroski F-Score.

Bear Case : NVS

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

Key Dynamics to Monitor

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

CRL carries more volatility with a beta of 1.45 — expect wider price swings.

NVS 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 39/100), backed by strong 23.9% margins. CRL offers better value entry with a 21.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Charles River Laboratories

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Charles River Laboratories International, Inc., is an American pharmaceutical company specializing in a variety of preclinical and clinical laboratory, gene therapy and cell therapy services for the Pharmaceutical, Medical device and Biotechnology industries. It also supplies assorted biomedical products and outsourcing services for research and development in the pharmaceutical industry and offer support in the fields of basic research, drug discovery, safety and efficacy, clinical support, and manufacturing.

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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