WallStSmart

Collegium Pharmaceutical Inc (COLL)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 7019% more annual revenue ($56.69B vs $796.33M). NVS leads profitability with a 22.5% profit margin vs 9.4%. COLL trades at a lower P/E of 17.2x. NVS earns a higher WallStSmart Score of 51/100 (C-).

COLL

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 7.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.05

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

COLLUndervalued (+88.1%)

Margin of Safety

+88.1%

Fair Value

$378.01

Current Price

$29.47

$348.54 discount

UndervaluedFair: $378.01Overvalued
NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$156.33

$63.60 premium

UndervaluedFair: $92.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COLL2 strengths · Avg: 8.5/10
Return on EquityProfitability
27.4%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

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

COLL4 concerns · Avg: 2.0/10
Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-46.6%2/10

Earnings declined 46.6%

Altman Z-ScoreHealth
1.052/10

Distress zone — elevated risk

Debt/EquityHealth
2.591/10

Elevated debt levels

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 : COLL

The strongest argument for COLL centers on Return on Equity, P/E Ratio.

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 : COLL

The primary concerns for COLL are Market Cap, EPS Growth, Altman Z-Score. Debt-to-equity of 2.59 is elevated, increasing financial risk.

Bear Case : NVS

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

Key Dynamics to Monitor

COLL carries more volatility with a beta of 0.73 — expect wider price swings.

COLL is growing revenue faster at 8.9% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), 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 22.5% margins. COLL offers better value entry with a 88.1% 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.

Collegium Pharmaceutical Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, develops and markets pain management medications. The company is headquartered in Stoughton, Massachusetts.

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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