WallStSmart

CareDx Inc (CDNA)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 12276% more annual revenue ($56.69B vs $458.09M). CDNA leads profitability with a 24.2% profit margin vs 22.5%. CDNA trades at a lower P/E of 22.6x. CDNA earns a higher WallStSmart Score of 53/100 (C-).

CDNA

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 4.0Value: 7.0Quality: 7.0
Piotroski: 4/9Altman Z: 0.36

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

CDNAUndervalued (+68.3%)

Margin of Safety

+68.3%

Fair Value

$62.15

Current Price

$47.31

$14.84 discount

UndervaluedFair: $62.15Overvalued
NVSSignificantly Overvalued (-63.9%)

Margin of Safety

-63.9%

Fair Value

$92.92

Current Price

$154.61

$61.69 premium

UndervaluedFair: $92.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNA3 strengths · Avg: 9.7/10
Revenue GrowthGrowth
52.2%10/10

Revenue surging 52.2% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Profit MarginProfitability
24.2%9/10

Keeps 24 of every $100 in revenue as profit

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$291.32B10/10

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

CDNA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
0.2%3/10

Operating margin of 0.2%

Return on EquityProfitability
-2.6%2/10

ROE of -2.6% — below average capital efficiency

Altman Z-ScoreHealth
0.362/10

Distress zone — elevated risk

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
3.562/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CDNA

The strongest argument for CDNA centers on Revenue Growth, Debt/Equity, Profit Margin. Profitability is solid with margins at 24.2% and operating margin at 0.2%. Revenue growth of 52.2% 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 22.5% and operating margin at 34.6%.

Bear Case : CDNA

The primary concerns for CDNA are EPS Growth, Operating Margin, Return on Equity.

Bear Case : NVS

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

Key Dynamics to Monitor

CDNA profiles as a growth stock while NVS is a value play — different risk/reward profiles.

CDNA carries more volatility with a beta of 2.42 — expect wider price swings.

CDNA is growing revenue faster at 52.2% — sustainability is the question.

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

Bottom Line

CDNA scores higher overall (53/100 vs 51/100), backed by strong 24.2% margins and 52.2% 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.

CareDx Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

CareDx, Inc. discovers, develops and markets diagnostic solutions for transplant patients and caregivers globally. The company is headquartered in South San Francisco, 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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