WallStSmart

Gilead Sciences Inc (GILD)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 92% more annual revenue ($56.67B vs $29.44B). GILD leads profitability with a 28.9% profit margin vs 24.7%. GILD appears more attractively valued with a PEG of 0.38. GILD earns a higher WallStSmart Score of 72/100 (B).

GILD

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 9.5Value: 10.0Quality: 5.5
Piotroski: 6/9

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

GILDUndervalued (+54.3%)

Margin of Safety

+54.3%

Fair Value

$299.95

Current Price

$137.21

$162.74 discount

UndervaluedFair: $299.95Overvalued
NVSSignificantly Overvalued (-244.2%)

Margin of Safety

-244.2%

Fair Value

$48.55

Current Price

$146.03

$97.48 premium

UndervaluedFair: $48.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GILD6 strengths · Avg: 9.3/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
37.4%10/10

Strong operational efficiency at 37.4%

Market CapQuality
$170.34B9/10

Large-cap with strong market position

Profit MarginProfitability
28.9%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
23.4%8/10

Earnings expanding 23.4% YoY

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$286.46B10/10

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

GILD1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

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
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : GILD

The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 suggests the stock is reasonably priced for its growth.

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 : GILD

The primary concerns for GILD are Revenue Growth.

Bear Case : NVS

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

Key Dynamics to Monitor

NVS carries more volatility with a beta of 0.50 — expect wider price swings.

GILD is growing revenue faster at 4.7% — sustainability is the question.

GILD generates stronger free cash flow (3.1B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GILD scores higher overall (72/100 vs 51/100), backed by strong 28.9% margins. Both earn "Strong 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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