WallStSmart

Inspire Medical Systems Inc (INSP)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 6104% more annual revenue ($56.58B vs $911.98M). NVS leads profitability with a 23.9% profit margin vs 16.0%. INSP trades at a lower P/E of 10.9x. INSP earns a higher WallStSmart Score of 66/100 (B-).

INSP

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 8.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.12

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

INSPUndervalued (+86.9%)

Margin of Safety

+86.9%

Fair Value

$519.34

Current Price

$53.41

$465.93 discount

UndervaluedFair: $519.34Overvalued
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

INSP4 strengths · Avg: 9.5/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
308.4%10/10

Earnings expanding 308.4% YoY

Altman Z-ScoreHealth
5.1210/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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

INSP2 concerns · Avg: 3.0/10
Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : INSP

The strongest argument for INSP centers on P/E Ratio, EPS Growth, Altman Z-Score. Profitability is solid with margins at 16.0% and operating margin at 17.1%. Revenue growth of 12.2% 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 : INSP

The primary concerns for INSP are Market Cap, Piotroski F-Score.

Bear Case : NVS

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

Key Dynamics to Monitor

INSP profiles as a mature stock while NVS is a declining play — different risk/reward profiles.

INSP carries more volatility with a beta of 0.86 — expect wider price swings.

INSP is growing revenue faster at 12.2% — sustainability is the question.

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

Bottom Line

INSP scores higher overall (66/100 vs 51/100), backed by strong 16.0% margins and 12.2% 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.

Inspire Medical Systems Inc

HEALTHCARE · MEDICAL DEVICES · USA

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and Europe. The company is headquartered in Golden Valley, Minnesota.

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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