WallStSmart

Globus Medical (GMED)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1703% more annual revenue ($56.69B vs $3.14B). NVS leads profitability with a 22.5% profit margin vs 17.0%. GMED appears more attractively valued with a PEG of 1.73. GMED earns a higher WallStSmart Score of 60/100 (C+).

GMED

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 6.7Quality: 9.5
Piotroski: 6/9Altman Z: 5.43

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

GMEDUndervalued (+37.2%)

Margin of Safety

+37.2%

Fair Value

$140.62

Current Price

$74.19

$66.43 discount

UndervaluedFair: $140.62Overvalued
NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GMED4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.4310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

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

GMED2 concerns · Avg: 3.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

EPS GrowthGrowth
-26.2%2/10

Earnings declined 26.2%

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
3.222/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GMED

The strongest argument for GMED centers on Debt/Equity, Altman Z-Score, Price/Book. Profitability is solid with margins at 17.0% and operating margin at 24.8%.

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 : GMED

The primary concerns for GMED are PEG Ratio, EPS Growth.

Bear Case : NVS

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

Key Dynamics to Monitor

GMED profiles as a mature stock while NVS is a value play — different risk/reward profiles.

GMED carries more volatility with a beta of 0.96 — expect wider price swings.

GMED is growing revenue faster at 5.9% — sustainability is the question.

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

Bottom Line

GMED scores higher overall (60/100 vs 51/100), backed by strong 17.0% margins. 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.

Globus Medical

HEALTHCARE · MEDICAL DEVICES · USA

Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders. The company is headquartered in Audubon, Pennsylvania.

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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