Novartis AG ADR (NVS)vsPenumbra Inc (PEN)
NVS
Novartis AG ADR
$161.93
+0.38%
HEALTHCARE · Cap: $303.67B
PEN
Penumbra Inc
$319.21
-0.59%
HEALTHCARE · Cap: $12.76B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 3712% more annual revenue ($57.36B vs $1.50B). NVS leads profitability with a 17.5% profit margin vs 10.7%. PEN appears more attractively valued with a PEG of 3.67. NVS earns a higher WallStSmart Score of 48/100 (D+).
NVS
Hold48
out of 100
Grade: D+
PEN
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-68.3%
Fair Value
$95.56
Current Price
$161.93
$66.37 premium
Margin of Safety
-9.4%
Fair Value
$309.07
Current Price
$319.21
$10.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.3%
Generating 5.6B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.2x book value
4.7% revenue growth
Grey zone — moderate risk
Trading at 8.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 23.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.5% and operating margin at 34.3%.
Bull Case : PEN
The strongest argument for PEN centers on Altman Z-Score, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are P/E Ratio, Price/Book, Revenue Growth.
Bear Case : PEN
The primary concerns for PEN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 79.6x leaves little room for execution misses.
Key Dynamics to Monitor
PEN carries more volatility with a beta of 0.70 — expect wider price swings.
PEN is growing revenue faster at 14.9% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVS scores higher overall (48/100 vs 42/100), backed by strong 17.5% margins. Both earn "Hold" 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.
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.
Visit Website →Penumbra Inc
HEALTHCARE · MEDICAL DEVICES · USA
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. The company is headquartered in Alameda, California.
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