WallStSmart

GlaxoSmithKline PLC ADR (GSK)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 73% more annual revenue ($56.67B vs $32.67B). NVS leads profitability with a 24.7% profit margin vs 17.5%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 70/100 (B).

GSK

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.24

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

GSKUndervalued (+66.2%)

Margin of Safety

+66.2%

Fair Value

$173.16

Current Price

$51.84

$121.32 discount

UndervaluedFair: $173.16Overvalued
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

GSK6 strengths · Avg: 9.2/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
43.3%10/10

Every $100 of equity generates 43 in profit

EPS GrowthGrowth
54.7%10/10

Earnings expanding 54.7% YoY

Market CapQuality
$104.38B9/10

Large-cap with strong market position

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.48B8/10

Generating 1.5B in free cash flow

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

GSK3 concerns · Avg: 3.0/10
Price/BookValuation
9.5x4/10

Trading at 9.5x book value

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

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 : GSK

The strongest argument for GSK centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 17.5% and operating margin at 18.9%. PEG of 0.50 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 : GSK

The primary concerns for GSK are Price/Book, Debt/Equity, Altman Z-Score.

Bear Case : NVS

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

Key Dynamics to Monitor

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

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

GSK is growing revenue faster at 6.2% — sustainability is the question.

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

Bottom Line

GSK scores higher overall (70/100 vs 51/100), backed by strong 17.5% 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.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

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.

Visit Website →

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