WallStSmart

Masimo Corporation (MASI)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3538% more annual revenue ($56.69B vs $1.56B). NVS leads profitability with a 22.5% profit margin vs 4.9%. NVS appears more attractively valued with a PEG of 4.15. MASI earns a higher WallStSmart Score of 56/100 (C).

MASI

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.43

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

MASIUndervalued (+4.8%)

Margin of Safety

+4.8%

Fair Value

$141.89

Current Price

$179.95

$38.06 discount

UndervaluedFair: $141.89Overvalued
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

MASI3 strengths · Avg: 9.3/10
EPS GrowthGrowth
214.4%10/10

Earnings expanding 214.4% YoY

Altman Z-ScoreHealth
3.4310/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

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

MASI4 concerns · Avg: 2.8/10
Price/BookValuation
11.9x4/10

Trading at 11.9x book value

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

PEG RatioValuation
4.832/10

Expensive relative to growth rate

P/E RatioValuation
44.4x2/10

Premium valuation, high expectations priced in

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 : MASI

The strongest argument for MASI centers on EPS Growth, Altman Z-Score, Operating Margin.

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 : MASI

The primary concerns for MASI are Price/Book, Profit Margin, PEG Ratio. A P/E of 44.4x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.

Bear Case : NVS

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

Key Dynamics to Monitor

MASI carries more volatility with a beta of 1.10 — expect wider price swings.

MASI is growing revenue faster at 8.5% — sustainability is the question.

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

Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MASI scores higher overall (56/100 vs 51/100). 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.

Masimo Corporation

HEALTHCARE · MEDICAL DEVICES · USA

Masimo Corporation develops, manufactures and markets non-invasive monitoring technologies and hospital automation solutions globally. The company is headquartered in Irvine, 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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