WallStSmart

Incyte Corporation (INCY)vsNovartis AG ADR (NVS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 955% more annual revenue ($56.58B vs $5.36B). INCY leads profitability with a 26.7% profit margin vs 23.9%. INCY appears more attractively valued with a PEG of 0.35. INCY earns a higher WallStSmart Score of 83/100 (A-).

INCY

Exceptional Buy

83

out of 100

Grade: A-

Growth: 8.7Profit: 9.5Value: 9.3Quality: 7.8
Piotroski: 5/9Altman Z: 3.07

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

INCYUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$624.90

Current Price

$95.27

$529.63 discount

UndervaluedFair: $624.90Overvalued
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

INCY6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

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

INCY0 concerns · Avg: 0/10

No major concerns identified

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 : INCY

The strongest argument for INCY centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 26.7% and operating margin at 25.5%. 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 23.9% and operating margin at 30.5%.

Bear Case : INCY

No major red flags identified for INCY, but monitor valuation.

Bear Case : NVS

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

Key Dynamics to Monitor

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

INCY carries more volatility with a beta of 0.86 — 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 (83/100 vs 51/100), backed by strong 26.7% margins and 20.9% revenue growth. Both earn "Exceptional 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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