WallStSmart

Masimo Corporation (MASI)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3530% more annual revenue ($56.58B vs $1.56B). NVS leads profitability with a 23.9% profit margin vs 4.9%. NVS appears more attractively valued with a PEG of 3.93. MASI earns a higher WallStSmart Score of 56/100 (C).

MASI

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.43

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

MASIUndervalued (+4.8%)

Margin of Safety

+4.8%

Fair Value

$141.85

Current Price

$178.82

$36.97 discount

UndervaluedFair: $141.85Overvalued
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

MASI3 strengths · Avg: 9.3/10
EPS GrowthGrowth
214.4%10/10

Earnings expanding 214.4% YoY

Altman Z-ScoreHealth
3.4310/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

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

MASI4 concerns · Avg: 2.8/10
Price/BookValuation
11.9x4/10

Trading at 11.9x book value

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

PEG RatioValuation
4.832/10

Expensive relative to growth rate

P/E RatioValuation
44.4x2/10

Premium valuation, high expectations priced in

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 : MASI

The strongest argument for MASI centers on EPS Growth, Altman Z-Score, Operating Margin.

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 : MASI

The primary concerns for MASI are Price/Book, Profit Margin, PEG Ratio. A P/E of 44.4x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.

Bear Case : NVS

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

Key Dynamics to Monitor

MASI profiles as a value stock while NVS is a declining play — different risk/reward profiles.

MASI carries more volatility with a beta of 1.10 — expect wider price swings.

MASI is growing revenue faster at 8.5% — sustainability is the question.

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

Bottom Line

MASI scores higher overall (56/100 vs 49/100). 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.

Masimo Corporation

HEALTHCARE · MEDICAL DEVICES · USA

Masimo Corporation develops, manufactures and markets non-invasive monitoring technologies and hospital automation solutions globally. The company is headquartered in Irvine, California.

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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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