WallStSmart

Novartis AG ADR (NVS)vsTakeda Pharmaceutical Co Ltd ADR (TAK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 7791% more annual revenue ($4.46T vs $56.58B). NVS leads profitability with a 23.9% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.33. TAK earns a higher WallStSmart Score of 60/100 (C).

NVS

Buy

51

out of 100

Grade: C-

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

TAK

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 5.7Quality: 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

$146.03

$36.08 premium

UndervaluedFair: $109.95Overvalued

Intrinsic value data unavailable for TAK.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$277.42B10/10

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

TAK5 strengths · Avg: 9.8/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
330.2%10/10

Earnings expanding 330.2% YoY

Free Cash FlowQuality
$317.47B10/10

Generating 317.5B in free cash flow

Market CapQuality
$52.57B9/10

Large-cap with strong market position

Areas to Watch

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

Grey zone — moderate risk

PEG RatioValuation
2.592/10

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%

TAK4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
75.6x2/10

Premium valuation, high expectations priced in

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 : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

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

Bear Case : TAK

The primary concerns for TAK are Revenue Growth, Return on Equity, Profit Margin. A P/E of 75.6x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

NVS profiles as a declining stock while TAK is a value play — different risk/reward profiles.

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

TAK is growing revenue faster at 4.2% — sustainability is the question.

TAK generates stronger free cash flow (317.5B), providing more financial flexibility.

Bottom Line

TAK scores higher overall (60/100 vs 51/100). 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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Takeda Pharmaceutical Co Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.

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