WallStSmart

Enhabit Inc. (EHAB)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 5238% more annual revenue ($56.58B vs $1.06B). NVS leads profitability with a 23.9% profit margin vs -0.4%. NVS earns a higher WallStSmart Score of 51/100 (C-).

EHAB

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.71

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

EHABUndervalued (+77.5%)

Margin of Safety

+77.5%

Fair Value

$50.06

Current Price

$13.78

$36.28 discount

UndervaluedFair: $50.06Overvalued
NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$145.23

$35.11 premium

UndervaluedFair: $110.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHAB2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
8667.0%10/10

Earnings expanding 8667.0% YoY

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

EHAB4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$706.40M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-0.5%2/10

ROE of -0.5% — 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 : EHAB

The strongest argument for EHAB centers on Price/Book, EPS 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 : EHAB

The primary concerns for EHAB are Revenue Growth, Altman Z-Score, Market Cap.

Bear Case : NVS

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

Key Dynamics to Monitor

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

EHAB carries more volatility with a beta of 0.96 — expect wider price swings.

EHAB is growing revenue faster at 4.7% — 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 48/100), backed by strong 23.9% margins. EHAB offers better value entry with a 77.5% 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.

Enhabit Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Enhabit, Inc. provides home health and hospice services in the United States.

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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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