WallStSmart

Edwards Lifesciences Corp (EW)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 771% more annual revenue ($56.69B vs $6.51B). NVS leads profitability with a 22.5% profit margin vs 15.4%. EW appears more attractively valued with a PEG of 2.09. EW earns a higher WallStSmart Score of 55/100 (C).

EW

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 4.48

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

EWUndervalued (+69.3%)

Margin of Safety

+69.3%

Fair Value

$257.97

Current Price

$89.72

$168.25 discount

UndervaluedFair: $257.97Overvalued
NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$156.33

$63.60 premium

UndervaluedFair: $92.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EW2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.4810/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
29.8%8/10

Strong operational efficiency at 29.8%

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

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
51.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-25.4%2/10

Earnings declined 25.4%

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 : EW

The strongest argument for EW centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.8%. Revenue growth of 13.6% 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 22.5% and operating margin at 34.6%.

Bear Case : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 51.2x leaves little room for execution misses.

Bear Case : NVS

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

Key Dynamics to Monitor

EW profiles as a mature stock while NVS is a value play — different risk/reward profiles.

EW carries more volatility with a beta of 0.85 — expect wider price swings.

EW is growing revenue faster at 13.6% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Bottom Line

EW scores higher overall (55/100 vs 51/100), backed by strong 15.4% margins and 13.6% 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.

Edwards Lifesciences Corp

HEALTHCARE · MEDICAL DEVICES · USA

Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.

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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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