WallStSmart

Molina Healthcare Inc (MOH)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 31% more annual revenue ($56.58B vs $43.10B). NVS leads profitability with a 23.9% profit margin vs 0.4%. MOH appears more attractively valued with a PEG of 1.87. NVS earns a higher WallStSmart Score of 49/100 (D+).

MOH

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 3.7Quality: 7.0
Piotroski: 4/9Altman Z: 4.01

NVS

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MOH.

NVSSignificantly Overvalued (-62.1%)

Margin of Safety

-62.1%

Fair Value

$91.39

Current Price

$148.38

$56.99 premium

UndervaluedFair: $91.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MOH3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
4.0110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.05B8/10

Generating 1.1B in free cash flow

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$273.77B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%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

MOH4 concerns · Avg: 3.3/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Return on EquityProfitability
4.6%3/10

ROE of 4.6% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Operating MarginProfitability
1.7%3/10

Operating margin of 1.7%

NVS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
3.932/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : MOH

The strongest argument for MOH centers on Altman Z-Score, Price/Book, Free Cash Flow.

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 : MOH

The primary concerns for MOH are PEG Ratio, Return on Equity, Profit Margin. A P/E of 53.7x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

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

MOH carries more volatility with a beta of 0.80 — expect wider price swings.

NVS is growing revenue faster at -0.7% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (49/100 vs 44/100), backed by strong 23.9% margins. Both earn "Hold" 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.

Molina Healthcare Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Molina Healthcare, Inc. provides managed care services to low-income individuals and families under the Medicaid and Medicare programs and through the state insurance marketplaces. The company is headquartered in Long Beach, 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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