Novartis AG ADR (NVS)vsDr. Reddy’s Laboratories Ltd ADR (RDY)
NVS
Novartis AG ADR
$148.38
-0.99%
HEALTHCARE · Cap: $273.77B
RDY
Dr. Reddy’s Laboratories Ltd ADR
$13.24
0.00%
HEALTHCARE · Cap: $11.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Dr. Reddy’s Laboratories Ltd ADR generates 494% more annual revenue ($335.93B vs $56.58B). NVS leads profitability with a 23.9% profit margin vs 12.8%. RDY appears more attractively valued with a PEG of 1.61. NVS earns a higher WallStSmart Score of 49/100 (D+).
NVS
Hold49
out of 100
Grade: D+
RDY
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.1%
Fair Value
$91.39
Current Price
$148.38
$56.99 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
Generating 10.7B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Expensive relative to growth rate
Trading at 16.8x book value
Operating margin of 1.5%
Weak financial health signals
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 Free Cash Flow, Altman Z-Score, Debt/Equity.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : RDY
The primary concerns for RDY are PEG Ratio, Price/Book, Operating Margin.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
NVS is growing revenue faster at -0.7% — sustainability is the question.
RDY generates stronger free cash flow (10.7B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVS scores higher overall (49/100 vs 48/100), backed by strong 23.9% margins. Both earn "Hold" 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.
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