WallStSmart

Masimo Corporation (MASI)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3605% more annual revenue ($56.58B vs $1.53B). NVS leads profitability with a 23.9% profit margin vs -9.9%. NVS appears more attractively valued with a PEG of 2.48. MASI earns a higher WallStSmart Score of 53/100 (C-).

MASI

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.44

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

MASIUndervalued (+14.3%)

Margin of Safety

+14.3%

Fair Value

$157.54

Current Price

$178.46

$20.92 discount

UndervaluedFair: $157.54Overvalued
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

MASI2 strengths · Avg: 9.5/10
EPS GrowthGrowth
214.4%10/10

Earnings expanding 214.4% YoY

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in 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

MASI4 concerns · Avg: 2.3/10
Price/BookValuation
12.9x4/10

Trading at 12.9x book value

PEG RatioValuation
4.832/10

Expensive relative to growth rate

P/E RatioValuation
46.5x2/10

Premium valuation, high expectations priced in

Profit MarginProfitability
-9.9%1/10

Currently unprofitable

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 : MASI

The strongest argument for MASI centers on EPS Growth, Return on Equity. Revenue growth of 12.0% 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 : MASI

The primary concerns for MASI are Price/Book, PEG Ratio, P/E Ratio. A P/E of 46.5x leaves little room for execution misses.

Bear Case : NVS

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

Key Dynamics to Monitor

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

MASI carries more volatility with a beta of 1.20 — expect wider price swings.

MASI is growing revenue faster at 12.0% — sustainability is the question.

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

Bottom Line

MASI scores higher overall (53/100 vs 51/100) and 12.0% revenue growth. 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.

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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