GlaxoSmithKline PLC ADR (GSK)vsNovartis AG ADR (NVS)
GSK
GlaxoSmithKline PLC ADR
$51.69
-0.73%
HEALTHCARE · Cap: $100.22B
NVS
Novartis AG ADR
$153.67
-1.59%
HEALTHCARE · Cap: $290.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 73% more annual revenue ($56.69B vs $32.78B). NVS leads profitability with a 22.5% profit margin vs 17.8%. NVS appears more attractively valued with a PEG of 4.15. GSK earns a higher WallStSmart Score of 58/100 (C).
GSK
Buy58
out of 100
Grade: C
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.7%
Fair Value
$46.18
Current Price
$51.69
$5.51 premium
Margin of Safety
-70.9%
Fair Value
$92.73
Current Price
$153.67
$60.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 36.3%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 31.8%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Areas to Watch
1.5% revenue growth
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 17.8% and operating margin at 36.3%.
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 31.8%.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, PEG Ratio.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
GSK is growing revenue faster at 1.5% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GSK scores higher overall (58/100 vs 51/100), backed by strong 17.8% margins. 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.
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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