WallStSmart

Novartis AG ADR (NVS)vsPenumbra Inc (PEN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3790% more annual revenue ($56.58B vs $1.45B). NVS leads profitability with a 23.9% profit margin vs 11.8%. PEN appears more attractively valued with a PEG of 0.74. PEN earns a higher WallStSmart Score of 50/100 (C-).

NVS

Hold

49

out of 100

Grade: D+

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

PEN

Buy

50

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 9.0
Piotroski: 4/9Altman Z: 4.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-62.6%)

Margin of Safety

-62.6%

Fair Value

$91.58

Current Price

$148.38

$56.80 premium

UndervaluedFair: $91.58Overvalued
PENOvervalued (-11.2%)

Margin of Safety

-11.2%

Fair Value

$304.08

Current Price

$320.53

$16.45 premium

UndervaluedFair: $304.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$289.19B10/10

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

PEN4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
4.1510/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.748/10

Growing faster than its price suggests

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

Areas to Watch

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
4.112/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

PEN3 concerns · Avg: 2.7/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

P/E RatioValuation
73.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-18.0%2/10

Earnings declined 18.0%

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 : PEN

The strongest argument for PEN centers on Altman Z-Score, Debt/Equity, PEG Ratio. Revenue growth of 15.6% demonstrates continued momentum. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

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

Bear Case : PEN

The primary concerns for PEN are Price/Book, P/E Ratio, EPS Growth. A P/E of 73.6x leaves little room for execution misses.

Key Dynamics to Monitor

NVS profiles as a declining stock while PEN is a growth play — different risk/reward profiles.

PEN carries more volatility with a beta of 0.70 — expect wider price swings.

PEN is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

PEN scores higher overall (50/100 vs 49/100) and 15.6% revenue growth. 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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Penumbra Inc

HEALTHCARE · MEDICAL DEVICES · USA

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. The company is headquartered in Alameda, California.

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