WallStSmart

Acadia Healthcare Company Inc (ACHC)vsNovartis AG ADR (NVS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1583% more annual revenue ($56.69B vs $3.37B). NVS leads profitability with a 22.5% profit margin vs -33.4%. ACHC appears more attractively valued with a PEG of 1.38. NVS earns a higher WallStSmart Score of 51/100 (C-).

ACHC

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 4.0Value: 7.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.29

NVS

Buy

51

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACHCUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$91.60

Current Price

$28.36

$63.24 discount

UndervaluedFair: $91.60Overvalued
NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACHC1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

Areas to Watch

ACHC4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.303/10

Elevated debt levels

Return on EquityProfitability
-56.5%2/10

ROE of -56.5% — below average capital efficiency

Revenue GrowthGrowth
-0.4%2/10

Revenue declined 0.4%

EPS GrowthGrowth
-63.6%2/10

Earnings declined 63.6%

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
1.183/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ACHC

The strongest argument for ACHC centers on Price/Book. PEG of 1.38 suggests the stock is reasonably priced for its growth.

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 34.6%.

Bear Case : ACHC

The primary concerns for ACHC are Debt/Equity, Return on Equity, Revenue Growth.

Bear Case : NVS

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

Key Dynamics to Monitor

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

ACHC carries more volatility with a beta of 0.62 — expect wider price swings.

NVS is growing revenue faster at 0.8% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Bottom Line

NVS scores higher overall (51/100 vs 47/100), backed by strong 22.5% margins. ACHC offers better value entry with a 83.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Acadia Healthcare Company Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Acadia Healthcare Company, Inc. develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral health facilities to serve the behavioral health and recovery needs of the communities in the United States. United States and Puerto Rico. The company is headquartered in Franklin, Tennessee.

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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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