WallStSmart

Galapagos NV ADR (GLPG)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 4987% more annual revenue ($56.58B vs $1.11B). GLPG leads profitability with a 28.8% profit margin vs 23.9%. GLPG trades at a lower P/E of 5.0x. GLPG earns a higher WallStSmart Score of 74/100 (B).

GLPG

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 8.3Quality: 5.0

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GLPGUndervalued (+89.3%)

Margin of Safety

+89.3%

Fair Value

$316.70

Current Price

$27.86

$288.84 discount

UndervaluedFair: $316.70Overvalued
NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GLPG5 strengths · Avg: 9.8/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

Operating MarginProfitability
88.0%10/10

Strong operational efficiency at 88.0%

Revenue GrowthGrowth
1093.0%10/10

Revenue surging 1093.0% year-over-year

EPS GrowthGrowth
3036.0%10/10

Earnings expanding 3036.0% YoY

Profit MarginProfitability
28.8%9/10

Keeps 29 of every $100 in revenue as profit

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%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

GLPG3 concerns · Avg: 3.0/10
Price/BookValuation
9.6x4/10

Trading at 9.6x book value

Market CapQuality
$1.91B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-43.28M2/10

Negative free cash flow — burning cash

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : GLPG

The strongest argument for GLPG centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.8% and operating margin at 88.0%. Revenue growth of 1093.0% 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 : GLPG

The primary concerns for GLPG are Price/Book, Market Cap, Free Cash Flow.

Bear Case : NVS

The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.

Key Dynamics to Monitor

GLPG profiles as a growth stock while NVS is a declining play — different risk/reward profiles.

NVS carries more volatility with a beta of 0.52 — expect wider price swings.

GLPG is growing revenue faster at 1093.0% — sustainability is the question.

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

Bottom Line

GLPG scores higher overall (74/100 vs 51/100), backed by strong 28.8% margins and 1093.0% revenue growth. Both earn "Strong 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.

Galapagos NV ADR

HEALTHCARE · BIOTECHNOLOGY · USA

Galapagos NV, a clinical-stage biotechnology company, discovers, develops and markets several small molecule drugs. The company is headquartered in Mechelen, Belgium.

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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