WallStSmart

Novartis AG ADR (NVS)vsTenet Healthcare Corporation (THC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 164% more annual revenue ($56.58B vs $21.45B). NVS leads profitability with a 23.9% profit margin vs 7.9%. NVS appears more attractively valued with a PEG of 2.59. THC earns a higher WallStSmart Score of 66/100 (B-).

NVS

Buy

51

out of 100

Grade: C-

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

THC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.0Value: 7.3Quality: 6.3
Piotroski: 6/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$146.03

$35.91 premium

UndervaluedFair: $110.12Overvalued
THCUndervalued (+78.8%)

Margin of Safety

+78.8%

Fair Value

$1068.55

Current Price

$190.38

$878.17 discount

UndervaluedFair: $1068.55Overvalued

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

THC4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
87.6%10/10

Earnings expanding 87.6% YoY

Free Cash FlowQuality
$1.46B8/10

Generating 1.5B 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
2.592/10

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%

THC4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

PEG RatioValuation
4.802/10

Expensive relative to growth rate

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 : THC

The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.

Bear Case : NVS

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

Bear Case : THC

The primary concerns for THC are Revenue Growth, Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

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

THC carries more volatility with a beta of 1.30 — expect wider price swings.

THC is growing revenue faster at 2.8% — sustainability is the question.

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

Bottom Line

THC scores higher overall (66/100 vs 51/100). Both earn "Strong 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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Tenet Healthcare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.

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