WallStSmart

Emergent Biosolutions Inc (EBS)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 7516% more annual revenue ($56.58B vs $742.90M). NVS leads profitability with a 23.9% profit margin vs 7.1%. EBS appears more attractively valued with a PEG of 0.38. EBS earns a higher WallStSmart Score of 55/100 (C).

EBS

Buy

55

out of 100

Grade: C

Growth: 2.0Profit: 4.5Value: 10.0Quality: 6.0
Piotroski: 4/9Altman Z: 1.28

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

EBSUndervalued (+74.3%)

Margin of Safety

+74.3%

Fair Value

$42.90

Current Price

$8.23

$34.67 discount

UndervaluedFair: $42.90Overvalued
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

EBS3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

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

EBS4 concerns · Avg: 2.8/10
Market CapQuality
$414.70M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.143/10

Elevated debt levels

Revenue GrowthGrowth
-23.6%2/10

Revenue declined 23.6%

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 : EBS

The strongest argument for EBS centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.38 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 : EBS

The primary concerns for EBS are Market Cap, Profit Margin, Debt/Equity.

Bear Case : NVS

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

Key Dynamics to Monitor

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

EBS carries more volatility with a beta of 2.36 — 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

EBS scores higher overall (55/100 vs 51/100). Both earn "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.

Emergent Biosolutions Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Emergent BioSolutions Inc., a life sciences company, focuses on providing preparedness and response products and solutions for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHT). The company is headquartered in Gaithersburg, Maryland.

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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