WallStSmart

Alkermes Plc (ALKS)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3733% more annual revenue ($56.58B vs $1.48B). NVS leads profitability with a 23.9% profit margin vs 16.4%. ALKS appears more attractively valued with a PEG of 1.96. NVS earns a higher WallStSmart Score of 51/100 (C-).

ALKS

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 7.0Value: 6.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.58

NVS

Buy

51

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALKSUndervalued (+54.1%)

Margin of Safety

+54.1%

Fair Value

$76.10

Current Price

$33.71

$42.39 discount

UndervaluedFair: $76.10Overvalued
NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALKS1 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

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

Areas to Watch

ALKS3 concerns · Avg: 2.7/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

Revenue GrowthGrowth
-10.6%2/10

Revenue declined 10.6%

EPS GrowthGrowth
-67.0%2/10

Earnings declined 67.0%

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%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALKS

The strongest argument for ALKS centers on Debt/Equity. Profitability is solid with margins at 16.4% and operating margin at 15.1%.

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%.

Bear Case : ALKS

The primary concerns for ALKS are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : NVS

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

Key Dynamics to Monitor

NVS carries more volatility with a beta of 0.52 — 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.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 50/100), backed by strong 23.9% margins. ALKS offers better value entry with a 54.1% margin of safety. 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.

Alkermes Plc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Alkermes plc, a biopharmaceutical company, researches, develops and markets pharmaceutical products to address the unmet medical needs of patients in various therapeutic areas in the United States, Ireland and internationally. The company is headquartered in Dublin, Ireland.

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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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