Baxter International Inc (BAX)vsNovartis AG ADR (NVS)
BAX
Baxter International Inc
$25.74
-2.28%
HEALTHCARE · Cap: $13.67B
NVS
Novartis AG ADR
$160.32
-0.04%
HEALTHCARE · Cap: $303.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 394% more annual revenue ($57.36B vs $11.61B). NVS leads profitability with a 17.5% profit margin vs -6.2%. NVS appears more attractively valued with a PEG of 3.84. BAX earns a higher WallStSmart Score of 50/100 (D+).
BAX
Hold50
out of 100
Grade: D+
NVS
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$45.47
Current Price
$25.74
$19.73 discount
Margin of Safety
-69.8%
Fair Value
$95.76
Current Price
$160.32
$64.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 36.8% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 34.3%
Every $100 of equity generates 27 in profit
Generating 4.8B in free cash flow
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
ROE of -11.1% — below average capital efficiency
Premium valuation, high expectations priced in
Trading at 8.1x book value
4.7% revenue growth
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BAX
The strongest argument for BAX centers on Price/Book, EPS Growth.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 17.5% and operating margin at 34.3%.
Bear Case : BAX
The primary concerns for BAX are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : NVS
The primary concerns for NVS are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
BAX profiles as a turnaround stock while NVS is a value play — different risk/reward profiles.
BAX carries more volatility with a beta of 0.67 — expect wider price swings.
BAX is growing revenue faster at 5.0% — sustainability is the question.
NVS generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
BAX scores higher overall (50/100 vs 48/100). Both earn "Hold" 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.
Baxter International Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.
Visit Website →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 →Compare with Other MEDICAL INSTRUMENTS & SUPPLIES Stocks
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