WallStSmart

EDAP TMS SA (EDAP)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 76282% more annual revenue ($56.58B vs $74.07M). NVS leads profitability with a 23.9% profit margin vs -41.7%. NVS appears more attractively valued with a PEG of 3.93. NVS earns a higher WallStSmart Score of 49/100 (D+).

EDAP

Avoid

25

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.7Quality: 5.0

NVS

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDAPUndervalued (+41.7%)

Margin of Safety

+41.7%

Fair Value

$8.41

Current Price

$4.31

$4.10 discount

UndervaluedFair: $8.41Overvalued
NVSSignificantly Overvalued (-62.1%)

Margin of Safety

-62.1%

Fair Value

$91.39

Current Price

$148.38

$56.99 premium

UndervaluedFair: $91.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDAP0 strengths · Avg: 0/10

No standout strengths identified

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$273.77B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%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

EDAP4 concerns · Avg: 2.8/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Market CapQuality
$156.30M3/10

Smaller company, higher risk/reward

PEG RatioValuation
90.472/10

Expensive relative to growth rate

Return on EquityProfitability
-124.0%2/10

ROE of -124.0% — below average capital efficiency

NVS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
3.932/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : EDAP

Revenue growth of 13.9% 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 : EDAP

The primary concerns for EDAP are Price/Book, Market Cap, PEG Ratio.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

EDAP profiles as a turnaround stock while NVS is a declining play — different risk/reward profiles.

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

EDAP is growing revenue faster at 13.9% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (49/100 vs 25/100), backed by strong 23.9% margins. EDAP offers better value entry with a 41.7% margin of safety. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

EDAP TMS SA

HEALTHCARE · MEDICAL DISTRIBUTION · USA

EDAP TMS SA, develops, produces, markets, distributes and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States and internationally. The company is headquartered in Lyon, France.

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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