Elanco Animal Health (ELAN)vsNovartis AG ADR (NVS)
ELAN
Elanco Animal Health
$21.80
-1.58%
HEALTHCARE · Cap: $10.89B
NVS
Novartis AG ADR
$147.85
+3.44%
HEALTHCARE · Cap: $282.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 1100% more annual revenue ($56.58B vs $4.71B). NVS leads profitability with a 23.9% profit margin vs -4.9%. NVS appears more attractively valued with a PEG of 2.48. NVS earns a higher WallStSmart Score of 51/100 (C-).
ELAN
Buy51
out of 100
Grade: C-
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.2%
Fair Value
$31.06
Current Price
$21.80
$9.26 discount
Margin of Safety
-52.5%
Fair Value
$109.60
Current Price
$147.85
$38.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 116.7% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Operating margin of 2.3%
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Distress zone — elevated risk
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 12.2% demonstrates continued momentum.
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 : ELAN
The primary concerns for ELAN are Operating Margin, PEG Ratio, Return on Equity.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
Key Dynamics to Monitor
ELAN profiles as a turnaround stock while NVS is a declining play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.88 — expect wider price swings.
ELAN is growing revenue faster at 12.2% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
ELAN scores higher overall (51/100 vs 51/100) and 12.2% revenue growth. 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.
Elanco Animal Health
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.
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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