WallStSmart

Illumina Inc (ILMN)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1203% more annual revenue ($56.58B vs $4.34B). NVS leads profitability with a 23.9% profit margin vs 19.6%. ILMN appears more attractively valued with a PEG of 2.31. ILMN earns a higher WallStSmart Score of 64/100 (C+).

ILMN

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 6.7Quality: 5.3
Piotroski: 5/9Altman Z: 1.62

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ILMNUndervalued (+60.5%)

Margin of Safety

+60.5%

Fair Value

$294.98

Current Price

$126.74

$168.24 discount

UndervaluedFair: $294.98Overvalued
NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ILMN2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

Areas to Watch

ILMN2 concerns · Avg: 4.0/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.624/10

Distress zone — elevated risk

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ILMN

The strongest argument for ILMN centers on Return on Equity, EPS Growth. Profitability is solid with margins at 19.6% and operating margin at 19.7%.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.

Bear Case : ILMN

The primary concerns for ILMN are PEG Ratio, Altman Z-Score.

Bear Case : NVS

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

Key Dynamics to Monitor

ILMN profiles as a value stock while NVS is a declining play — different risk/reward profiles.

ILMN carries more volatility with a beta of 1.49 — expect wider price swings.

ILMN is growing revenue faster at 5.0% — sustainability is the question.

NVS generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ILMN scores higher overall (64/100 vs 51/100), backed by strong 19.6% 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.

Illumina Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Illumina, Inc. is an American company. Incorporated on April 1, 1998, Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The company provides a line of products and services that serves the sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in San Diego, California.

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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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