WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 69665% more annual revenue ($56.69B vs $81.26M). NVS leads profitability with a 22.5% profit margin vs -126.3%. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

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

ZYME

Avoid

18

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.3Quality: 7.0
Piotroski: 5/9Altman Z: -1.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-68.7%)

Margin of Safety

-68.7%

Fair Value

$92.54

Current Price

$158.83

$66.29 premium

UndervaluedFair: $92.54Overvalued
ZYMEUndervalued (+1.3%)

Margin of Safety

+1.3%

Fair Value

$23.12

Current Price

$22.01

$1.11 discount

UndervaluedFair: $23.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$290.96B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

ZYME1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

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
1.223/10

Elevated debt levels

PEG RatioValuation
4.152/10

Expensive relative to growth rate

ZYME4 concerns · Avg: 3.3/10
Price/BookValuation
10.1x4/10

Trading at 10.1x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.75B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-42.0%2/10

ROE of -42.0% — below average capital efficiency

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 31.8%.

Bull Case : ZYME

The strongest argument for ZYME centers on Debt/Equity.

Bear Case : NVS

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

Bear Case : ZYME

The primary concerns for ZYME are Price/Book, EPS Growth, Market Cap.

Key Dynamics to Monitor

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

ZYME carries more volatility with a beta of 1.13 — expect wider price swings.

NVS is growing revenue faster at 0.8% — 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 18/100), backed by strong 22.5% margins. 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.

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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.

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