Novartis AG ADR (NVS)vsSelect Medical Holdings (SEM)
NVS
Novartis AG ADR
$148.38
-0.96%
HEALTHCARE · Cap: $273.77B
SEM
Select Medical Holdings
$16.54
+0.30%
HEALTHCARE · Cap: $2.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 925% more annual revenue ($56.58B vs $5.52B). NVS leads profitability with a 23.9% profit margin vs 2.4%. SEM appears more attractively valued with a PEG of 2.26. SEM earns a higher WallStSmart Score of 50/100 (C-).
NVS
Hold49
out of 100
Grade: D+
SEM
Buy50
out of 100
Grade: C-
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 SEM.
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
Reasonable price relative to book value
Attractively priced relative to earnings
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Expensive relative to growth rate
Distress zone — elevated risk
ROE of 7.6% — below average capital efficiency
2.4% margin — thin
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 : SEM
The strongest argument for SEM centers on Price/Book, P/E Ratio.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : SEM
The primary concerns for SEM are PEG Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 1.70 is elevated, increasing financial risk. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
NVS profiles as a declining stock while SEM is a value play — different risk/reward profiles.
SEM carries more volatility with a beta of 0.79 — expect wider price swings.
SEM is growing revenue faster at 5.0% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
SEM scores higher overall (50/100 vs 49/100). 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 →Select Medical Holdings
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company is headquartered in Mechanicsburg, Pennsylvania.
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