WallStSmart

Novartis AG ADR (NVS)vsPrecision Optics Corporation, Inc. Common stock (POCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 195808% more annual revenue ($56.69B vs $28.94M). NVS leads profitability with a 22.5% profit margin vs -17.0%. 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

POCI

Hold

36

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 4.0Quality: 6.0
Piotroski: 3/9Altman Z: -2.78
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-68.7%)

Margin of Safety

-68.7%

Fair Value

$92.54

Current Price

$158.83

$66.29 premium

UndervaluedFair: $92.54Overvalued
POCISignificantly Overvalued (-19.1%)

Margin of Safety

-19.1%

Fair Value

$4.20

Current Price

$4.15

$0.05 premium

UndervaluedFair: $4.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$290.96B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

POCI3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
108.0%10/10

Revenue surging 108.0% year-over-year

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

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
1.223/10

Elevated debt levels

PEG RatioValuation
4.152/10

Expensive relative to growth rate

POCI4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$45.42M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-29.6%2/10

ROE of -29.6% — 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 31.8%.

Bull Case : POCI

The strongest argument for POCI centers on Revenue Growth, Debt/Equity, Price/Book. Revenue growth of 108.0% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : POCI

The primary concerns for POCI are EPS Growth, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

NVS profiles as a value stock while POCI is a hypergrowth play — different risk/reward profiles.

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

POCI is growing revenue faster at 108.0% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 36/100), 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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Precision Optics Corporation, Inc. Common stock

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Precision Optics Corporation, Inc. designs, develops, manufactures, and sells specialized optical and lighting systems and related components primarily in the United States and the European Economic Area. The company is headquartered in Gardner, Massachusetts.

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