WallStSmart

Amneal Pharmaceuticals, Inc. Class A Common Stock (AMRX)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1774% more annual revenue ($56.58B vs $3.02B). NVS leads profitability with a 23.9% profit margin vs 2.4%. NVS trades at a lower P/E of 21.2x. NVS earns a higher WallStSmart Score of 51/100 (C-).

AMRX

Hold

44

out of 100

Grade: D

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.8
Piotroski: 5/9Altman Z: 1.13

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

AMRXUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$34.70

Current Price

$12.80

$21.90 discount

UndervaluedFair: $34.70Overvalued
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

AMRX1 strengths · Avg: 10.0/10
EPS GrowthGrowth
261.0%10/10

Earnings expanding 261.0% YoY

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

AMRX4 concerns · Avg: 2.3/10
Profit MarginProfitability
2.4%3/10

2.4% margin — thin

P/E RatioValuation
58.2x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-881.0%2/10

ROE of -881.0% — below average capital efficiency

Altman Z-ScoreHealth
1.132/10

Distress zone — elevated risk

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 : AMRX

The strongest argument for AMRX centers on EPS Growth. Revenue growth of 11.5% demonstrates continued momentum.

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 : AMRX

The primary concerns for AMRX are Profit Margin, P/E Ratio, Return on Equity. A P/E of 58.2x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.

Bear Case : NVS

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

Key Dynamics to Monitor

AMRX profiles as a value stock while NVS is a declining play — different risk/reward profiles.

AMRX carries more volatility with a beta of 1.32 — expect wider price swings.

AMRX is growing revenue faster at 11.5% — 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 44/100), backed by strong 23.9% margins. AMRX offers better value entry with a 57.6% 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.

Amneal Pharmaceuticals, Inc. Class A Common Stock

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Amneal Pharmaceuticals, Inc. develops, licenses, manufactures, markets and distributes generic and specialty pharmaceutical products for various dosage forms and therapeutic areas. The company is headquartered in Bridgewater, New Jersey.

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 →

Want to dig deeper into these stocks?