WallStSmart

Arrowhead Pharmaceuticals Inc (ARWR)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 5086% more annual revenue ($56.58B vs $1.09B). NVS leads profitability with a 23.9% profit margin vs 18.5%. NVS trades at a lower P/E of 21.2x. ARWR earns a higher WallStSmart Score of 56/100 (C).

ARWR

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 8.5Value: 4.7Quality: 5.8
Piotroski: 5/9Altman Z: 0.27

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

Intrinsic value data unavailable for ARWR.

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

ARWR2 strengths · Avg: 10.0/10
Return on EquityProfitability
75.5%10/10

Every $100 of equity generates 76 in profit

Revenue GrowthGrowth
10461.0%10/10

Revenue surging 10461.0% year-over-year

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

ARWR3 concerns · Avg: 2.7/10
Price/BookValuation
17.7x4/10

Trading at 17.7x book value

P/E RatioValuation
44.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.272/10

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 : ARWR

The strongest argument for ARWR centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 18.5% and operating margin at 15.5%. Revenue growth of 10461.0% 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 : ARWR

The primary concerns for ARWR are Price/Book, P/E Ratio, Altman Z-Score. A P/E of 44.1x leaves little room for execution misses.

Bear Case : NVS

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

Key Dynamics to Monitor

ARWR profiles as a growth stock while NVS is a declining play — different risk/reward profiles.

ARWR carries more volatility with a beta of 1.27 — expect wider price swings.

ARWR is growing revenue faster at 10461.0% — sustainability is the question.

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

Bottom Line

ARWR scores higher overall (56/100 vs 51/100), backed by strong 18.5% margins and 10461.0% revenue growth. 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.

Arrowhead Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Arrowhead Pharmaceuticals, Inc. develops drugs for the treatment of intractable diseases in the United States. The company is headquartered in Pasadena, California.

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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