WallStSmart

Novartis AG ADR (NVS)vsOrganon & Co (OGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 825% more annual revenue ($56.69B vs $6.13B). NVS leads profitability with a 22.5% profit margin vs 3.4%. OGN trades at a lower P/E of 17.4x. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

OGN

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 7.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$156.33

$63.60 premium

UndervaluedFair: $92.73Overvalued
OGNUndervalued (+37.4%)

Margin of Safety

+37.4%

Fair Value

$12.29

Current Price

$13.60

$1.31 discount

UndervaluedFair: $12.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$291.32B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

OGN3 strengths · Avg: 8.7/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.7%8/10

Strong operational efficiency at 20.7%

Areas to Watch

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
1.183/10

Elevated debt levels

PEG RatioValuation
3.562/10

Expensive relative to growth rate

OGN4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.3%2/10

Revenue declined 2.3%

EPS GrowthGrowth
-28.3%2/10

Earnings declined 28.3%

Comparative Analysis Report

WallStSmart Research

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 34.6%.

Bull Case : OGN

The strongest argument for OGN centers on Return on Equity, P/E Ratio, Operating Margin.

Bear Case : NVS

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

Bear Case : OGN

The primary concerns for OGN are Profit Margin, Piotroski F-Score, Revenue Growth. Debt-to-equity of 9.49 is elevated, increasing financial risk. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

OGN carries more volatility with a beta of 1.54 — expect wider price swings.

NVS is growing revenue faster at 0.8% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 49/100), backed by strong 22.5% margins. OGN offers better value entry with a 37.4% margin of safety. 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.

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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Organon & Co

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Organon & Co. is an American pharmaceutical company headquartered in Jersey City, New Jersey. Organon specializes in the following core therapeutic fields: reproductive medicine, contraception, psychiatry, Hormone replacement therapy (HRT), and anesthesia. The company sells to international markets.

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