WallStSmart

Novartis AG ADR (NVS)vsVarex Imaging Corp (VREX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 6511% more annual revenue ($56.69B vs $857.50M). NVS leads profitability with a 22.5% profit margin vs -9.6%. NVS appears more attractively valued with a PEG of 3.56. VREX earns a higher WallStSmart Score of 52/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

VREX

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 4.3Quality: 7.0
Piotroski: 5/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$154.44

$61.71 premium

UndervaluedFair: $92.73Overvalued
VREXUndervalued (+14.6%)

Margin of Safety

+14.6%

Fair Value

$15.93

Current Price

$12.25

$3.68 discount

UndervaluedFair: $15.93Overvalued

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

VREX2 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
453.4%10/10

Earnings expanding 453.4% YoY

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

VREX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Market CapQuality
$466.56M3/10

Smaller company, higher risk/reward

PEG RatioValuation
6.302/10

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 22.5% and operating margin at 34.6%.

Bull Case : VREX

The strongest argument for VREX centers on Price/Book, EPS Growth.

Bear Case : NVS

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

Bear Case : VREX

The primary concerns for VREX are Revenue Growth, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

NVS profiles as a value stock while VREX is a turnaround play — different risk/reward profiles.

VREX carries more volatility with a beta of 0.90 — expect wider price swings.

VREX is growing revenue faster at 1.5% — sustainability is the question.

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

Bottom Line

VREX scores higher overall (52/100 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.

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Varex Imaging Corp

HEALTHCARE · MEDICAL DEVICES · USA

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company is headquartered in Salt Lake City, Utah.

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