WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 834% more annual revenue ($56.67B vs $6.07B). NVS leads profitability with a 24.7% profit margin vs 17.7%. EW appears more attractively valued with a PEG of 2.14. EW earns a higher WallStSmart Score of 55/100 (C).

EW

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 7.3Quality: 4.8
Piotroski: 2/9

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EWSignificantly Overvalued (-544.4%)

Margin of Safety

-544.4%

Fair Value

$12.31

Current Price

$82.67

$70.36 premium

UndervaluedFair: $12.31Overvalued
NVSSignificantly Overvalued (-243.7%)

Margin of Safety

-243.7%

Fair Value

$48.62

Current Price

$150.75

$102.13 premium

UndervaluedFair: $48.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EW1 strengths · Avg: 8.0/10
Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$286.27B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.144/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
45.7x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-76.6%2/10

Earnings declined 76.6%

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.542/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EW

The strongest argument for EW centers on Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 23.7%. Revenue growth of 13.3% demonstrates continued momentum.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.

Bear Case : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 45.7x leaves little room for execution misses.

Bear Case : NVS

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

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 0.93 — expect wider price swings.

EW is growing revenue faster at 13.3% — sustainability is the question.

NVS generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

EW scores higher overall (55/100 vs 51/100), backed by strong 17.7% margins and 13.3% 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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