WallStSmart

Novartis AG ADR (NVS)vsSanofi ADR (SNY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 16% more annual revenue ($56.69B vs $48.92B). NVS leads profitability with a 22.5% profit margin vs 8.1%. NVS appears more attractively valued with a PEG of 3.22. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

SNY

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 4.7Quality: 5.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued
SNYUndervalued (+7.8%)

Margin of Safety

+7.8%

Fair Value

$51.00

Current Price

$42.77

$8.23 discount

UndervaluedFair: $51.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

SNY4 strengths · Avg: 8.8/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Market CapQuality
$102.36B9/10

Large-cap with strong market position

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Free Cash FlowQuality
$3.90B8/10

Generating 3.9B in free cash flow

Areas to Watch

NVS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.183/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

SNY3 concerns · Avg: 2.3/10
Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

PEG RatioValuation
28.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-91.2%2/10

Earnings declined 91.2%

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 22.5% and operating margin at 34.6%.

Bull Case : SNY

The strongest argument for SNY centers on Price/Book, Market Cap, Operating Margin. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Bear Case : SNY

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

Key Dynamics to Monitor

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

SNY is growing revenue faster at 14.6% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 49/100), backed by strong 22.5% margins. 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.

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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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