Laboratory Corporation of America Holdings (LH)vsNovartis AG ADR (NVS)
LH
Laboratory Corporation of America Holdings
$265.15
+1.60%
HEALTHCARE · Cap: $21.83B
NVS
Novartis AG ADR
$148.38
-0.55%
HEALTHCARE · Cap: $273.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 300% more annual revenue ($56.58B vs $14.14B). NVS leads profitability with a 23.9% profit margin vs 6.7%. LH appears more attractively valued with a PEG of 1.13. LH earns a higher WallStSmart Score of 67/100 (B-).
LH
Strong Buy67
out of 100
Grade: B-
NVS
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.9%
Fair Value
$208.66
Current Price
$265.15
$56.49 premium
Margin of Safety
-62.1%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 32.9% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
6.7% margin — thin
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : LH
The strongest argument for LH centers on Price/Book, EPS Growth. PEG of 1.13 suggests the stock is reasonably priced for its growth.
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 : LH
The primary concerns for LH are Profit Margin.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
LH profiles as a value stock while NVS is a declining play — different risk/reward profiles.
LH carries more volatility with a beta of 0.88 — expect wider price swings.
LH is growing revenue faster at 5.8% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
LH scores higher overall (67/100 vs 49/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Laboratory Corporation of America Holdings
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
Visit Website →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.
Visit Website →Compare with Other DIAGNOSTICS & RESEARCH Stocks
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