WallStSmart

Novartis AG ADR (NVS)vsU.S. Physical Therapy, Inc. (USPH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 6949% more annual revenue ($56.69B vs $804.27M). NVS leads profitability with a 22.5% profit margin vs 4.0%. USPH appears more attractively valued with a PEG of 2.70. 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

USPH

Hold

46

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-53.7%)

Margin of Safety

-53.7%

Fair Value

$93.40

Current Price

$143.57

$50.17 premium

UndervaluedFair: $93.40Overvalued
USPHUndervalued (+0.5%)

Margin of Safety

+0.5%

Fair Value

$88.62

Current Price

$84.84

$3.78 discount

UndervaluedFair: $88.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$271.25B10/10

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

USPH1 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

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
3.312/10

Expensive relative to growth rate

USPH4 concerns · Avg: 3.0/10
Market CapQuality
$1.24B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : USPH

The strongest argument for USPH centers on Price/Book.

Bear Case : NVS

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

Bear Case : USPH

The primary concerns for USPH are Market Cap, Return on Equity, Profit Margin. A P/E of 489.2x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

USPH carries more volatility with a beta of 1.13 — expect wider price swings.

USPH is growing revenue faster at 8.5% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 46/100), backed by strong 22.5% margins. Both earn "Buy" and "Hold" 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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U.S. Physical Therapy, Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

US Physical Therapy, Inc. operates outpatient physical therapy clinics that provide preoperative and postoperative care and treatment for orthopedic-related disorders, sports-related injuries, preventive care, injured worker rehabilitation, and neurology-related injuries. The company is headquartered in Houston, Texas.

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