Novartis AG ADR (NVS)vsWest Pharmaceutical Services Inc (WST)
NVS
Novartis AG ADR
$156.33
+1.37%
HEALTHCARE · Cap: $291.32B
WST
West Pharmaceutical Services Inc
$354.07
+1.57%
HEALTHCARE · Cap: $24.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 1604% more annual revenue ($56.69B vs $3.33B). NVS leads profitability with a 22.5% profit margin vs 17.0%. WST appears more attractively valued with a PEG of 2.91. WST earns a higher WallStSmart Score of 61/100 (C+).
NVS
Buy51
out of 100
Grade: C-
WST
Buy61
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
-47.9%
Fair Value
$166.45
Current Price
$354.07
$187.62 premium
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
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Areas to Watch
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Trading at 8.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : WST
The strongest argument for WST centers on Altman Z-Score, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 22.5%. Revenue growth of 13.8% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : WST
The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.
Key Dynamics to Monitor
NVS profiles as a value stock while WST is a mature play — different risk/reward profiles.
WST carries more volatility with a beta of 1.16 — expect wider price swings.
WST is growing revenue faster at 13.8% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Bottom Line
WST scores higher overall (61/100 vs 51/100), backed by strong 17.0% margins and 13.8% 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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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