WallStSmart

Novartis AG ADR (NVS)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 922% more annual revenue ($56.58B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 23.9%. RMD appears more attractively valued with a PEG of 1.15. RMD earns a higher WallStSmart Score of 73/100 (B).

NVS

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

RMD

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 4.7Quality: 9.5
Piotroski: 6/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-62.6%)

Margin of Safety

-62.6%

Fair Value

$91.58

Current Price

$148.38

$56.80 premium

UndervaluedFair: $91.58Overvalued
RMDSignificantly Overvalued (-27.0%)

Margin of Safety

-27.0%

Fair Value

$204.42

Current Price

$196.04

$8.38 premium

UndervaluedFair: $204.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$289.19B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%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

RMD5 strengths · Avg: 9.4/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Areas to Watch

NVS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
4.112/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

RMD0 concerns · Avg: 0/10

No major concerns identified

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 : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.

Bear Case : RMD

No major red flags identified for RMD, but monitor valuation.

Key Dynamics to Monitor

NVS profiles as a declining stock while RMD is a mature play — different risk/reward profiles.

RMD carries more volatility with a beta of 0.78 — expect wider price swings.

RMD is growing revenue faster at 10.8% — sustainability is the question.

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

Bottom Line

RMD scores higher overall (73/100 vs 49/100), backed by strong 27.4% margins and 10.8% revenue growth. Both earn "Strong 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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ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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