Novartis AG ADR (NVS)vsPhilip Morris International Inc (PM)
NVS
Novartis AG ADR
$150.75
+1.44%
HEALTHCARE · Cap: $286.27B
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 39% more annual revenue ($56.67B vs $40.65B). PM leads profitability with a 27.9% profit margin vs 24.7%. PM appears more attractively valued with a PEG of 1.86. PM earns a higher WallStSmart Score of 70/100 (B-).
NVS
Buy51
out of 100
Grade: C-
PM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-243.7%
Fair Value
$48.62
Current Price
$150.75
$102.13 premium
Margin of Safety
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
Areas to Watch
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
NVS profiles as a value stock while PM is a mature play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.50 — expect wider price swings.
PM is growing revenue faster at 6.8% — sustainability is the question.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
PM scores higher overall (70/100 vs 51/100), backed by strong 27.9% margins. Both earn "Strong 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 →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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