Novartis AG ADR (NVS)vsDr. Reddy’s Laboratories Ltd ADR (RDY)
NVS
Novartis AG ADR
$137.16
-0.23%
HEALTHCARE · Cap: $260.70B
RDY
Dr. Reddy’s Laboratories Ltd ADR
$11.90
+1.62%
HEALTHCARE · Cap: $9.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 484% more annual revenue ($331.19B vs $56.69B). NVS leads profitability with a 22.5% profit margin vs 10.0%. RDY appears more attractively valued with a PEG of 1.61. NVS earns a higher WallStSmart Score of 51/100 (C-).
NVS
Buy51
out of 100
Grade: C-
RDY
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.0%
Fair Value
$93.29
Current Price
$137.16
$43.87 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 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Trading at 14.9x book value
Operating margin of 4.3%
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 22.5% and operating margin at 34.6%.
Bull Case : RDY
The strongest argument for RDY centers on Altman Z-Score, Debt/Equity.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : RDY
The primary concerns for RDY are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
NVS is growing revenue faster at 0.8% — 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 44/100), 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.
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.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?