WallStSmart

Novartis AG ADR (NVS)vsPennant Group Inc (PNTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 5870% more annual revenue ($56.58B vs $947.71M). NVS leads profitability with a 23.9% profit margin vs 3.1%. PNTG appears more attractively valued with a PEG of 1.80. PNTG earns a higher WallStSmart Score of 59/100 (C).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

PNTG

Buy

59

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued
PNTGUndervalued (+73.0%)

Margin of Safety

+73.0%

Fair Value

$117.14

Current Price

$30.71

$86.43 discount

UndervaluedFair: $117.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%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

PNTG2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
53.2%10/10

Revenue surging 53.2% year-over-year

EPS GrowthGrowth
53.7%10/10

Earnings expanding 53.7% YoY

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

PNTG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

P/E RatioValuation
36.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.1%3/10

3.1% 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 23.9% and operating margin at 30.5%.

Bull Case : PNTG

The strongest argument for PNTG centers on Revenue Growth, EPS Growth. Revenue growth of 53.2% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : PNTG

The primary concerns for PNTG are PEG Ratio, P/E Ratio, Market Cap. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

NVS profiles as a declining stock while PNTG is a hypergrowth play — different risk/reward profiles.

PNTG carries more volatility with a beta of 1.30 — expect wider price swings.

PNTG is growing revenue faster at 53.2% — sustainability is the question.

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

Bottom Line

PNTG scores higher overall (59/100 vs 51/100) and 53.2% 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.

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Pennant Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

The Pennant Group, Inc. provides health care services in Arizona, California, Colorado, Idaho, Iowa, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The company is headquartered in Eagle, Idaho.

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