WallStSmart

Novartis AG ADR (NVS)vsPfizer Inc (PFE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pfizer Inc generates 12% more annual revenue ($63.70B vs $56.69B). NVS leads profitability with a 22.5% profit margin vs 6.8%. NVS appears more attractively valued with a PEG of 3.22. 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

PFE

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 6.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued
PFEUndervalued (+7.9%)

Margin of Safety

+7.9%

Fair Value

$30.10

Current Price

$27.72

$2.38 discount

UndervaluedFair: $30.10Overvalued

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

PFE3 strengths · Avg: 8.3/10
Market CapQuality
$157.99B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.9%8/10

Strong operational efficiency at 27.9%

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

PFE4 concerns · Avg: 3.8/10
P/E RatioValuation
36.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

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 : PFE

The strongest argument for PFE centers on Market Cap, Price/Book, Operating Margin.

Bear Case : NVS

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

Bear Case : PFE

The primary concerns for PFE are P/E Ratio, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

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

PFE is growing revenue faster at 2.6% — 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. 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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Pfizer Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The name of the company commemorates its co-founder, Charles Pfizer (1824-1906). Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology. The company has several blockbuster drugs or products that each generate more than 1 billion USD in annual revenues.

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