WallStSmart

Mednax Inc (MD)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 2829% more annual revenue ($56.58B vs $1.93B). NVS leads profitability with a 23.9% profit margin vs 9.0%. MD appears more attractively valued with a PEG of 0.24. MD earns a higher WallStSmart Score of 66/100 (B-).

MD

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.71

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

MDUndervalued (+65.0%)

Margin of Safety

+65.0%

Fair Value

$61.27

Current Price

$23.87

$37.40 discount

UndervaluedFair: $61.27Overvalued
NVSSignificantly Overvalued (-62.6%)

Margin of Safety

-62.6%

Fair Value

$91.58

Current Price

$148.38

$56.80 premium

UndervaluedFair: $91.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MD4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
50.0%10/10

Earnings expanding 50.0% YoY

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$289.19B10/10

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

MD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$2.00B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-135.75M2/10

Negative free cash flow — burning cash

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
4.112/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : MD

The strongest argument for MD centers on PEG Ratio, P/E Ratio, EPS Growth. PEG of 0.24 suggests the stock is reasonably priced for its growth.

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 : MD

The primary concerns for MD are Revenue Growth, Altman Z-Score, Market Cap.

Bear Case : NVS

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

Key Dynamics to Monitor

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

MD carries more volatility with a beta of 0.70 — expect wider price swings.

MD is growing revenue faster at 3.9% — sustainability is the question.

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

Bottom Line

MD scores higher overall (66/100 vs 49/100). Both earn "Strong 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.

Mednax Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

MEDNAX, Inc., provides neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialties in the United States and Puerto Rico. The company is headquartered in Sunrise, Florida.

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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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