HUTCHMED DRC (HCM)vsNovartis AG ADR (NVS)
HCM
HUTCHMED DRC
$13.36
-1.69%
HEALTHCARE · Cap: $2.30B
NVS
Novartis AG ADR
$147.85
+3.44%
HEALTHCARE · Cap: $282.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 10215% more annual revenue ($56.58B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 23.9%. HCM trades at a lower P/E of 5.0x. NVS earns a higher WallStSmart Score of 51/100 (C-).
HCM
Hold42
out of 100
Grade: D
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+52.3%
Fair Value
$31.70
Current Price
$13.36
$18.34 discount
Margin of Safety
-52.5%
Fair Value
$109.60
Current Price
$147.85
$38.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 45 in profit
Keeps 83 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Weak financial health signals
Revenue declined 16.5%
Earnings declined 98.1%
Negative free cash flow — burning cash
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 83.3% and operating margin at -13.2%.
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 : HCM
The primary concerns for HCM are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.52 — expect wider price swings.
NVS is growing revenue faster at -0.7% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), 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 42/100), backed by strong 23.9% margins. HCM offers better value entry with a 52.3% 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.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
Visit Website →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.
Visit Website →Compare with Other DRUG MANUFACTURERS - SPECIALTY & GENERIC Stocks
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