WallStSmart

HealthEquity Inc (HQY)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 4215% more annual revenue ($56.67B vs $1.31B). NVS leads profitability with a 24.7% profit margin vs 16.4%. HQY appears more attractively valued with a PEG of 1.19. HQY earns a higher WallStSmart Score of 66/100 (B-).

HQY

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 6.7Quality: 6.5
Piotroski: 4/9

NVS

Buy

51

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+54.7%)

Margin of Safety

+54.7%

Fair Value

$169.68

Current Price

$81.48

$88.20 discount

UndervaluedFair: $169.68Overvalued
NVSSignificantly Overvalued (-52.2%)

Margin of Safety

-52.2%

Fair Value

$109.78

Current Price

$142.94

$33.16 premium

UndervaluedFair: $109.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY2 strengths · Avg: 9.0/10
EPS GrowthGrowth
92.4%10/10

Earnings expanding 92.4% YoY

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$280.79B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : HQY

The strongest argument for HQY centers on EPS Growth, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bull Case : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio.

Bear Case : NVS

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

Key Dynamics to Monitor

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

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

HQY is growing revenue faster at 7.3% — sustainability is the question.

NVS generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

HQY scores higher overall (66/100 vs 51/100), backed by strong 16.4% margins. 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.

HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

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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