WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 8277% more annual revenue ($56.69B vs $676.80M). NVS leads profitability with a 22.5% profit margin vs -1.3%. EBS appears more attractively valued with a PEG of 0.38. NVS earns a higher WallStSmart Score of 51/100 (C-).

EBS

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 8.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.63

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

EBSUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$29.90

Current Price

$7.56

$22.34 discount

UndervaluedFair: $29.90Overvalued
NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$153.27

$60.54 premium

UndervaluedFair: $92.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBS2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$291.32B10/10

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

EBS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.634/10

Distress zone — elevated risk

Market CapQuality
$374.59M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.103/10

Elevated debt levels

Return on EquityProfitability
-1.6%2/10

ROE of -1.6% — below average capital efficiency

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
3.562/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : EBS

The strongest argument for EBS centers on PEG 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 22.5% and operating margin at 34.6%.

Bear Case : EBS

The primary concerns for EBS are Altman Z-Score, Market Cap, Debt/Equity.

Bear Case : NVS

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

Key Dynamics to Monitor

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

EBS carries more volatility with a beta of 2.34 — expect wider price swings.

NVS is growing revenue faster at 0.8% — 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 48/100), backed by strong 22.5% margins. EBS offers better value entry with a 63.1% 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.

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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