WallStSmart

Incyte Corporation (INCY)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 958% more annual revenue ($56.69B vs $5.36B). INCY leads profitability with a 26.7% profit margin vs 22.5%. NVS appears more attractively valued with a PEG of 4.15. INCY earns a higher WallStSmart Score of 72/100 (B).

INCY

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.7Quality: 9.0
Piotroski: 5/9Altman Z: 3.89

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INCYUndervalued (+83.1%)

Margin of Safety

+83.1%

Fair Value

$583.69

Current Price

$127.10

$456.59 discount

UndervaluedFair: $583.69Overvalued
NVSSignificantly Overvalued (-68.7%)

Margin of Safety

-68.7%

Fair Value

$92.54

Current Price

$158.83

$66.29 premium

UndervaluedFair: $92.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INCY6 strengths · Avg: 9.3/10
EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.8910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$290.96B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

Areas to Watch

INCY1 concerns · Avg: 2.0/10
PEG RatioValuation
12.042/10

Expensive relative to growth rate

NVS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
4.152/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : INCY

The strongest argument for INCY centers on EPS Growth, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 26.7% and operating margin at 25.6%. Revenue growth of 20.9% demonstrates continued momentum.

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 : INCY

The primary concerns for INCY are PEG Ratio.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Key Dynamics to Monitor

INCY profiles as a growth stock while NVS is a value play — different risk/reward profiles.

INCY carries more volatility with a beta of 0.76 — expect wider price swings.

INCY is growing revenue faster at 20.9% — sustainability is the question.

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

Bottom Line

INCY scores higher overall (72/100 vs 51/100), backed by strong 26.7% margins and 20.9% revenue growth. 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.

Incyte Corporation

HEALTHCARE · BIOTECHNOLOGY · USA

Incyte Corp is an American pharmaceutical company based in Alapocas, Delaware.

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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