Novartis AG ADR (NVS)vsZoetis Inc (ZTS)
NVS
Novartis AG ADR
$156.33
+1.37%
HEALTHCARE · Cap: $291.32B
ZTS
Zoetis Inc
$72.66
-5.97%
HEALTHCARE · Cap: $31.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 495% more annual revenue ($56.69B vs $9.53B). ZTS leads profitability with a 28.0% profit margin vs 22.5%. ZTS appears more attractively valued with a PEG of 1.82. ZTS earns a higher WallStSmart Score of 66/100 (B-).
NVS
Buy51
out of 100
Grade: C-
ZTS
Strong Buy66
out of 100
Grade: B-
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
+10.8%
Fair Value
$144.23
Current Price
$72.66
$71.57 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
Every $100 of equity generates 82 in profit
Strong operational efficiency at 36.6%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 9.3x book value
2.9% revenue growth
Elevated debt levels
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 : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.0% and operating margin at 36.6%.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.86 is elevated, increasing financial risk.
Key Dynamics to Monitor
ZTS carries more volatility with a beta of 0.75 — expect wider price swings.
ZTS is growing revenue faster at 2.9% — 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
ZTS scores higher overall (66/100 vs 51/100), backed by strong 28.0% margins. Both earn "Strong 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 →Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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