WallStSmart

Novartis AG ADR (NVS)vsPhibro Animal Health Corporation (PAHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3634% more annual revenue ($56.69B vs $1.52B). NVS leads profitability with a 22.5% profit margin vs 6.6%. PAHC appears more attractively valued with a PEG of 1.68. PAHC earns a higher WallStSmart Score of 63/100 (C+).

NVS

Buy

51

out of 100

Grade: C-

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

PAHC

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-50.3%)

Margin of Safety

-50.3%

Fair Value

$93.40

Current Price

$141.28

$47.88 premium

UndervaluedFair: $93.40Overvalued
PAHCOvervalued (-9.6%)

Margin of Safety

-9.6%

Fair Value

$46.99

Current Price

$34.10

$12.89 premium

UndervaluedFair: $46.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

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

PAHC3 strengths · Avg: 8.3/10
Return on EquityProfitability
26.3%9/10

Every $100 of equity generates 26 in profit

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.6%8/10

Earnings expanding 24.6% YoY

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
3.222/10

Expensive relative to growth rate

PAHC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Market CapQuality
$1.43B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

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 : PAHC

The strongest argument for PAHC centers on Return on Equity, P/E Ratio, EPS Growth.

Bear Case : NVS

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

Bear Case : PAHC

The primary concerns for PAHC are PEG Ratio, Revenue Growth, Market Cap. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

PAHC is growing revenue faster at 4.8% — 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

PAHC scores higher overall (63/100 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.

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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Phibro Animal Health Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Phibro Animal Health Corporation develops, manufactures and supplies a range of mineral nutrition and animal health products for livestock primarily in the United States. The company is headquartered in Teaneck, New Jersey.

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