WallStSmart

Novartis AG ADR (NVS)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 473% more annual revenue ($56.67B vs $9.89B). NVS leads profitability with a 24.7% profit margin vs 13.0%. NVS appears more attractively valued with a PEG of 2.54. PANW earns a higher WallStSmart Score of 58/100 (C).

NVS

Buy

51

out of 100

Grade: C-

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

PANW

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 2.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-243.7%)

Margin of Safety

-243.7%

Fair Value

$48.62

Current Price

$150.75

$102.13 premium

UndervaluedFair: $48.62Overvalued
PANWSignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$84.24

Current Price

$153.22

$68.98 premium

UndervaluedFair: $84.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$128.28B9/10

Large-cap with strong market position

Areas to Watch

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%

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.962/10

Expensive relative to growth rate

P/E RatioValuation
87.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PANW

The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 87.3x leaves little room for execution misses.

Key Dynamics to Monitor

PANW carries more volatility with a beta of 0.82 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

NVS generates stronger free cash flow (1.6B), providing more financial flexibility.

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

Bottom Line

PANW scores higher overall (58/100 vs 51/100) and 14.9% revenue growth. 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.

Visit Website →

Palo Alto Networks Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.

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