Novartis AG ADR (NVS)vsDr. Reddy’s Laboratories Ltd ADR (RDY)
NVS
Novartis AG ADR
$147.85
+3.44%
HEALTHCARE · Cap: $282.11B
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.73
-2.14%
HEALTHCARE · Cap: $11.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 511% more annual revenue ($345.83B vs $56.58B). NVS leads profitability with a 23.9% profit margin vs 16.4%. NVS appears more attractively valued with a PEG of 2.48. RDY earns a higher WallStSmart Score of 53/100 (C-).
NVS
Buy51
out of 100
Grade: C-
RDY
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.5%
Fair Value
$109.60
Current Price
$147.85
$38.25 premium
Intrinsic value data unavailable for RDY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Generating 3.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
Trading at 17.0x book value
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : RDY
The strongest argument for RDY centers on Altman Z-Score, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 16.4% and operating margin at 16.4%.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
Bear Case : RDY
The primary concerns for RDY are Price/Book, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
NVS profiles as a declining stock while RDY is a value play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.52 — expect wider price swings.
RDY is growing revenue faster at 4.4% — sustainability is the question.
RDY generates stronger free cash flow (3.6B), providing more financial flexibility.
Bottom Line
RDY scores higher overall (53/100 vs 51/100), backed by strong 16.4% margins. 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.
Visit Website →Dr. Reddy’s Laboratories Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Dr. Reddy's Laboratories Limited is a globally integrated pharmaceutical company. The company is headquartered in Hyderabad, India.
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