WallStSmart

Novartis AG ADR (NVS)vsOutset Medical Inc (OM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 47255% more annual revenue ($56.58B vs $119.48M). NVS leads profitability with a 23.9% profit margin vs -68.3%. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

OM

Hold

37

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: -5.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$146.57

$36.97 premium

UndervaluedFair: $109.60Overvalued
OMUndervalued (+83.6%)

Margin of Safety

+83.6%

Fair Value

$27.66

Current Price

$4.36

$23.30 discount

UndervaluedFair: $27.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%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

OM1 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

OM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$81.71M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-106.2%2/10

ROE of -106.2% — below average capital efficiency

Revenue GrowthGrowth
-2.0%2/10

Revenue declined 2.0%

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 23.9% and operating margin at 30.5%.

Bull Case : OM

The strongest argument for OM centers on Price/Book.

Bear Case : NVS

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

Bear Case : OM

The primary concerns for OM are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

NVS profiles as a declining stock while OM is a turnaround play — different risk/reward profiles.

OM carries more volatility with a beta of 1.96 — 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 (51/100 vs 37/100), backed by strong 23.9% margins. OM offers better value entry with a 83.6% 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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Outset Medical Inc

HEALTHCARE · MEDICAL DEVICES · USA

Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. The company is headquartered in San Jose, California.

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