Novartis AG ADR (NVS)vsVertex Pharmaceuticals Inc (VRTX)
NVS
Novartis AG ADR
$156.33
+1.37%
HEALTHCARE · Cap: $291.32B
VRTX
Vertex Pharmaceuticals Inc
$496.07
+2.49%
HEALTHCARE · Cap: $121.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 350% more annual revenue ($56.69B vs $12.59B). VRTX leads profitability with a 35.0% profit margin vs 22.5%. VRTX appears more attractively valued with a PEG of 1.62. VRTX earns a higher WallStSmart Score of 64/100 (C+).
NVS
Buy51
out of 100
Grade: C-
VRTX
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.5%
Fair Value
$92.73
Current Price
$156.33
$63.60 premium
Margin of Safety
+50.1%
Fair Value
$971.64
Current Price
$496.07
$475.57 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Areas to Watch
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 35.0% and operating margin at 38.1%. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
NVS profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
VRTX is growing revenue faster at 12.5% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (64/100 vs 51/100), backed by strong 35.0% margins and 12.5% revenue growth. 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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