WallStSmart

Medtronic PLC (MDT)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 56% more annual revenue ($56.58B vs $36.36B). NVS leads profitability with a 23.9% profit margin vs 13.2%. MDT appears more attractively valued with a PEG of 1.59. MDT earns a higher WallStSmart Score of 62/100 (C+).

MDT

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.99

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

MDTUndervalued (+12.1%)

Margin of Safety

+12.1%

Fair Value

$91.70

Current Price

$81.67

$10.03 discount

UndervaluedFair: $91.70Overvalued
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

MDT4 strengths · Avg: 8.3/10
Market CapQuality
$103.20B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Free Cash FlowQuality
$2.08B8/10

Generating 2.1B in free cash flow

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

MDT2 concerns · Avg: 4.0/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

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 : MDT

The strongest argument for MDT centers on Market Cap, Price/Book, 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 : MDT

The primary concerns for MDT are PEG Ratio, Altman Z-Score.

Bear Case : NVS

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

Key Dynamics to Monitor

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

MDT carries more volatility with a beta of 0.60 — expect wider price swings.

MDT is growing revenue faster at 9.9% — sustainability is the question.

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

Bottom Line

MDT scores higher overall (62/100 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.

Medtronic PLC

HEALTHCARE · MEDICAL DEVICES · USA

Medtronic plc is an American-Irish registered medical device company that primarily operates in the United States. Medtronic has an operational and executive headquarters in Fridley, Minnesota in the US.

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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