WallStSmart

Novartis AG ADR (NVS)vsTela Bio Inc (TELA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 70380% more annual revenue ($56.58B vs $80.28M). NVS leads profitability with a 23.9% profit margin vs -48.4%. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

TELA

Avoid

33

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 6.7Quality: 5.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued
TELAUndervalued (+89.8%)

Margin of Safety

+89.8%

Fair Value

$7.70

Current Price

$0.87

$6.83 discount

UndervaluedFair: $7.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

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

TELA1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
18.2%8/10

18.2% revenue growth

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

TELA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$34.90M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-223.3%2/10

ROE of -223.3% — below average capital efficiency

Free Cash FlowQuality
$-4.96M2/10

Negative free cash flow — burning cash

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 : TELA

The strongest argument for TELA centers on Revenue Growth. Revenue growth of 18.2% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : TELA

The primary concerns for TELA are EPS Growth, Market Cap, Return on Equity. Debt-to-equity of 26.98 is elevated, increasing financial risk.

Key Dynamics to Monitor

NVS profiles as a declining stock while TELA is a growth play — different risk/reward profiles.

TELA carries more volatility with a beta of 0.99 — expect wider price swings.

TELA is growing revenue faster at 18.2% — 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 33/100), backed by strong 23.9% margins. TELA offers better value entry with a 89.8% margin of safety. Both earn "Buy" and "Avoid" 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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Tela Bio Inc

HEALTHCARE · MEDICAL DEVICES · USA

TELA Bio, Inc., a medical technology company, focuses on the design, development and commercialization of tissue reinforcement materials to address unmet needs in soft tissue reconstruction. The company is headquartered in Malvern, Pennsylvania.

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