Gilead Sciences Inc (GILD)vsNovartis AG ADR (NVS)
GILD
Gilead Sciences Inc
$143.72
-0.75%
HEALTHCARE · Cap: $179.56B
NVS
Novartis AG ADR
$137.16
-0.23%
HEALTHCARE · Cap: $260.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 86% more annual revenue ($56.69B vs $30.46B). NVS leads profitability with a 22.5% profit margin vs -10.6%. GILD appears more attractively valued with a PEG of 1.95. GILD earns a higher WallStSmart Score of 54/100 (C-).
GILD
Buy54
out of 100
Grade: C-
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.7%
Fair Value
$223.50
Current Price
$143.72
$79.78 discount
Margin of Safety
-47.0%
Fair Value
$93.29
Current Price
$137.16
$43.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.7%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Generating 3.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 15.1x book value
Grey zone — moderate risk
ROE of -27.4% — below average capital efficiency
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on Operating Margin, EPS Growth, Market Cap. Revenue growth of 10.2% 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 22.5% and operating margin at 34.6%.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 2.22 is elevated, increasing financial risk.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
GILD profiles as a turnaround stock while NVS is a value play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
GILD is growing revenue faster at 10.2% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (54/100 vs 51/100) and 10.2% 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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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