Novartis AG ADR (NVS)vsSimulations Plus Inc (SLP)
NVS
Novartis AG ADR
$148.38
-0.96%
HEALTHCARE · Cap: $273.77B
SLP
Simulations Plus Inc
$16.65
+2.97%
HEALTHCARE · Cap: $333.19M
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 70153% more annual revenue ($56.58B vs $80.53M). NVS leads profitability with a 23.9% profit margin vs -78.0%. NVS appears more attractively valued with a PEG of 3.93. NVS earns a higher WallStSmart Score of 49/100 (D+).
NVS
Hold49
out of 100
Grade: D+
SLP
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
Margin of Safety
+51.0%
Fair Value
$24.72
Current Price
$16.65
$8.07 discount
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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Strong operational efficiency at 23.2%
Earnings expanding 46.7% YoY
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -38.8% — below average capital efficiency
Currently unprofitable
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 : SLP
The strongest argument for SLP centers on Debt/Equity, Altman Z-Score, Price/Book.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : SLP
The primary concerns for SLP are Market Cap, PEG Ratio, Return on Equity.
Key Dynamics to Monitor
NVS profiles as a declining stock while SLP is a turnaround play — different risk/reward profiles.
SLP carries more volatility with a beta of 1.32 — expect wider price swings.
SLP is growing revenue faster at 8.3% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NVS scores higher overall (49/100 vs 48/100), backed by strong 23.9% margins. SLP offers better value entry with a 51.0% margin of safety. 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 →Simulations Plus Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling, simulation, and prediction of molecule properties using artificial intelligence and machine learning technology worldwide. The company is headquartered in Lancaster, California.
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