WallStSmart

Novartis AG ADR (NVS)vsZymeworks Inc. Common Stock (ZYME)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 53293% more annual revenue ($56.58B vs $105.97M). NVS leads profitability with a 23.9% profit margin vs -76.6%. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

ZYME

Avoid

20

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued
ZYMEUndervalued (+29.3%)

Margin of Safety

+29.3%

Fair Value

$32.28

Current Price

$27.83

$4.45 discount

UndervaluedFair: $32.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

ZYME0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

ZYME4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-26.7%2/10

ROE of -26.7% — below average capital efficiency

Revenue GrowthGrowth
-91.9%2/10

Revenue declined 91.9%

Free Cash FlowQuality
$-10.55M2/10

Negative free cash flow — burning cash

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 23.9% and operating margin at 30.5%.

Bull Case : ZYME

ZYME has a balanced fundamental profile.

Bear Case : NVS

The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.

Bear Case : ZYME

The primary concerns for ZYME are EPS Growth, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

NVS profiles as a declining stock while ZYME is a turnaround play — different risk/reward profiles.

ZYME carries more volatility with a beta of 1.20 — expect wider price swings.

NVS is growing revenue faster at -0.7% — sustainability is the question.

NVS generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

NVS scores higher overall (51/100 vs 20/100), backed by strong 23.9% margins. ZYME offers better value entry with a 29.3% margin of safety. Both earn "Buy" and "Avoid" 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 →

Zymeworks Inc. Common Stock

HEALTHCARE · BIOTECHNOLOGY · USA

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops and markets biotherapeutic products for the treatment of cancer. The company is headquartered in Vancouver, Canada.

Want to dig deeper into these stocks?