WallStSmart

Novartis AG ADR (NVS)vsTransMedics Group Inc (TMDX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 8816% more annual revenue ($56.69B vs $635.89M). TMDX leads profitability with a 27.0% profit margin vs 22.5%. TMDX trades at a lower P/E of 17.5x. 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

TMDX

Buy

50

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-63.9%)

Margin of Safety

-63.9%

Fair Value

$92.92

Current Price

$154.61

$61.69 premium

UndervaluedFair: $92.92Overvalued
TMDXUndervalued (+52.4%)

Margin of Safety

+52.4%

Fair Value

$279.99

Current Price

$87.02

$192.97 discount

UndervaluedFair: $279.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$291.32B10/10

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

TMDX4 strengths · Avg: 8.8/10
Return on EquityProfitability
34.8%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.2%8/10

Revenue surging 21.2% year-over-year

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
3.562/10

Expensive relative to growth rate

TMDX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Debt/EquityHealth
1.673/10

Elevated debt levels

EPS GrowthGrowth
-71.5%2/10

Earnings declined 71.5%

Free Cash FlowQuality
$-1.91M2/10

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 22.5% and operating margin at 34.6%.

Bull Case : TMDX

The strongest argument for TMDX centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 27.0% and operating margin at 7.7%. Revenue growth of 21.2% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : TMDX

The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

NVS profiles as a value stock while TMDX is a growth play — different risk/reward profiles.

TMDX carries more volatility with a beta of 1.88 — expect wider price swings.

TMDX is growing revenue faster at 21.2% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 50/100), backed by strong 22.5% margins. TMDX offers better value entry with a 52.4% margin of safety. 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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TransMedics Group Inc

HEALTHCARE · MEDICAL DEVICES · USA

TransMedics Group, Inc., a commercial-stage medical technology company, is dedicated to transforming organ transplant therapy for patients with end-stage organ failure in the United States and internationally. The company is headquartered in Andover, Massachusetts.

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