Novartis AG ADR (NVS)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
NVS
Novartis AG ADR
$148.09
+1.41%
HEALTHCARE · Cap: $286.27B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.03
+0.92%
HEALTHCARE · Cap: $56.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 7778% more annual revenue ($4.46T vs $56.67B). NVS leads profitability with a 24.7% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.39. TAK earns a higher WallStSmart Score of 60/100 (C).
NVS
Buy51
out of 100
Grade: C-
TAK
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-243.7%
Fair Value
$48.62
Current Price
$148.09
$99.47 premium
Margin of Safety
-77.5%
Fair Value
$10.30
Current Price
$18.02
$7.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 150 in profit
Earnings expanding 330.2% YoY
Generating 317.5B in free cash flow
Large-cap with strong market position
Areas to Watch
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
4.2% revenue growth
2.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Bear Case : TAK
The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 82.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.50 — 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.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
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.
Visit Website →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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