Novartis AG ADR (NVS)vsRoyalty Pharma Plc (RPRX)
NVS
Novartis AG ADR
$151.40
-0.81%
HEALTHCARE · Cap: $285.98B
RPRX
Royalty Pharma Plc
$54.48
+2.35%
HEALTHCARE · Cap: $31.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 2218% more annual revenue ($56.58B vs $2.44B). RPRX leads profitability with a 33.9% profit margin vs 23.9%. RPRX appears more attractively valued with a PEG of 2.02. RPRX earns a higher WallStSmart Score of 65/100 (C+).
NVS
Buy51
out of 100
Grade: C-
RPRX
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.6%
Fair Value
$91.23
Current Price
$151.40
$60.17 premium
Margin of Safety
-59.2%
Fair Value
$34.23
Current Price
$54.48
$20.25 premium
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
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 100.3%
Earnings expanding 23.2% YoY
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Expensive relative to growth rate
Moderate valuation
Elevated debt levels
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 : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 33.9% and operating margin at 100.3%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : RPRX
The primary concerns for RPRX are PEG Ratio, P/E Ratio, Debt/Equity.
Key Dynamics to Monitor
NVS profiles as a declining stock while RPRX is a mature play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
RPRX is growing revenue faster at 11.0% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
RPRX scores higher overall (65/100 vs 51/100), backed by strong 33.9% margins and 11.0% revenue growth. 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 →Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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