WallStSmart

Community Health Systems Inc (CYH)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 373% more annual revenue ($56.69B vs $11.98B). NVS leads profitability with a 22.5% profit margin vs 2.1%. CYH appears more attractively valued with a PEG of 2.38. NVS earns a higher WallStSmart Score of 51/100 (C-).

CYH

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 8.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.06

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

CYHUndervalued (+86.7%)

Margin of Safety

+86.7%

Fair Value

$25.26

Current Price

$2.95

$22.31 discount

UndervaluedFair: $25.26Overvalued
NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$153.27

$60.54 premium

UndervaluedFair: $92.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CYH2 strengths · Avg: 10.0/10
P/E RatioValuation
0.9x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-7.3410/10

Conservative balance sheet, low leverage

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

CYH4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Market CapQuality
$391.75M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

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 : CYH

The strongest argument for CYH centers on P/E Ratio, Debt/Equity.

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 : CYH

The primary concerns for CYH are PEG Ratio, Market Cap, Return on Equity. Thin 2.1% margins leave little buffer for downturns.

Bear Case : NVS

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

Key Dynamics to Monitor

CYH carries more volatility with a beta of 1.81 — expect wider price swings.

NVS is growing revenue faster at 0.8% — sustainability is the question.

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

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVS scores higher overall (51/100 vs 45/100), backed by strong 22.5% margins. CYH offers better value entry with a 86.7% 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.

Community Health Systems Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Community Health Systems, Inc. owns, leases and operates general acute care hospitals in the United States. The company is headquartered in Franklin, Tennessee.

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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