GlaxoSmithKline PLC ADR (GSK)vsNovartis AG ADR (NVS)
GSK
GlaxoSmithKline PLC ADR
$51.84
-1.01%
HEALTHCARE · Cap: $104.38B
NVS
Novartis AG ADR
$146.03
-1.46%
HEALTHCARE · Cap: $286.46B
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 Buy70
out of 100
Grade: B
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.2%
Fair Value
$173.16
Current Price
$51.84
$121.32 discount
Margin of Safety
-244.2%
Fair Value
$48.55
Current Price
$146.03
$97.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 43 in profit
Earnings expanding 54.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Areas to Watch
Trading at 9.5x book value
Elevated debt levels
Distress zone — elevated risk
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
Comparative Analysis Report
WallStSmart ResearchBull 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.
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