WallStSmart

Community Health Systems Inc (CYH)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 360% more annual revenue ($56.58B vs $12.29B). NVS leads profitability with a 23.9% profit margin vs 3.8%. CYH appears more attractively valued with a PEG of 2.38. NVS earns a higher WallStSmart Score of 49/100 (D+).

CYH

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 8.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.06

NVS

Hold

49

out of 100

Grade: D+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CYHUndervalued (+87.2%)

Margin of Safety

+87.2%

Fair Value

$26.37

Current Price

$2.74

$23.63 discount

UndervaluedFair: $26.37Overvalued
NVSSignificantly Overvalued (-65.2%)

Margin of Safety

-65.2%

Fair Value

$91.39

Current Price

$148.38

$56.99 premium

UndervaluedFair: $91.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CYH2 strengths · Avg: 10.0/10
P/E RatioValuation
0.9x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-7.4010/10

Conservative balance sheet, low leverage

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$289.19B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%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

CYH4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Market CapQuality
$422.75M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

NVS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
4.112/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : CYH

The strongest argument for CYH centers on P/E Ratio, Debt/Equity.

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 : CYH

The primary concerns for CYH are PEG Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

CYH profiles as a value stock while NVS is a declining play — different risk/reward profiles.

CYH carries more volatility with a beta of 1.86 — 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 (49/100 vs 45/100), backed by strong 23.9% margins. CYH offers better value entry with a 87.2% margin of safety. Both earn "Hold" 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.

Community Health Systems Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Community Health Systems, Inc. owns, leases and operates general acute care hospitals in the United States. The company is headquartered in Franklin, Tennessee.

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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