WallStSmart

Altria Group (MO)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 181% more annual revenue ($56.67B vs $20.14B). MO leads profitability with a 34.5% profit margin vs 24.7%. MO appears more attractively valued with a PEG of 1.65. NVS earns a higher WallStSmart Score of 51/100 (C-).

MO

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 8.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.86

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MOSignificantly Overvalued (-135.3%)

Margin of Safety

-135.3%

Fair Value

$28.02

Current Price

$63.78

$35.76 premium

UndervaluedFair: $28.02Overvalued
NVSSignificantly Overvalued (-243.7%)

Margin of Safety

-243.7%

Fair Value

$48.62

Current Price

$150.75

$102.13 premium

UndervaluedFair: $48.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MO6 strengths · Avg: 9.2/10
Profit MarginProfitability
34.5%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
57.1%10/10

Strong operational efficiency at 57.1%

Debt/EquityHealth
-7.3410/10

Conservative balance sheet, low leverage

Market CapQuality
$107.97B9/10

Large-cap with strong market position

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.18B8/10

Generating 3.2B in free cash flow

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$286.27B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

MO4 concerns · Avg: 2.8/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

EPS GrowthGrowth
-62.9%2/10

Earnings declined 62.9%

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.542/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 34.5% and operating margin at 57.1%.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.

Bear Case : MO

The primary concerns for MO are PEG Ratio, Return on Equity, Revenue Growth.

Bear Case : NVS

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

Key Dynamics to Monitor

MO profiles as a declining stock while NVS is a value play — different risk/reward profiles.

NVS carries more volatility with a beta of 0.50 — expect wider price swings.

NVS is growing revenue faster at 2.2% — sustainability is the question.

MO generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

NVS scores higher overall (51/100 vs 47/100), backed by strong 24.7% margins. Both earn "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.

Altria Group

CONSUMER DEFENSIVE · TOBACCO · USA

Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.

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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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