WallStSmart

Novartis AG ADR (NVS)vsSanofi ADR (SNY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 19% more annual revenue ($56.58B vs $47.35B). NVS leads profitability with a 23.9% profit margin vs 16.0%. NVS appears more attractively valued with a PEG of 2.56. SNY earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 3.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

SNY

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.0%)

Margin of Safety

-52.0%

Fair Value

$109.95

Current Price

$144.62

$34.67 premium

UndervaluedFair: $109.95Overvalued
SNYUndervalued (+25.0%)

Margin of Safety

+25.0%

Fair Value

$62.70

Current Price

$43.35

$19.35 discount

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$275.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%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

SNY4 strengths · Avg: 8.8/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Market CapQuality
$110.40B9/10

Large-cap with strong market position

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

Areas to Watch

NVS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.562/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

SNY3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

PEG RatioValuation
3.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.7%2/10

Earnings declined 11.7%

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 : SNY

The strongest argument for SNY centers on Price/Book, Market Cap, Operating Margin. Profitability is solid with margins at 16.0% and operating margin at 20.0%.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, PEG Ratio, Revenue Growth.

Bear Case : SNY

The primary concerns for SNY are Return on Equity, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

SNY is growing revenue faster at 6.0% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 51/100), backed by strong 23.9% margins. SNY offers better value entry with a 25.0% margin of safety. 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.

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Sanofi ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Sanofi, a healthcare company, is engaged in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally. The company is headquartered in Paris, France.

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