WallStSmart

Novartis AG ADR (NVS)vsPenumbra Inc (PEN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 3931% more annual revenue ($56.58B vs $1.40B). NVS leads profitability with a 23.9% profit margin vs 12.7%. PEN appears more attractively valued with a PEG of 0.73. PEN earns a higher WallStSmart Score of 64/100 (C+).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 3.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

PEN

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 6.5Value: 5.3Quality: 7.8
Piotroski: 4/9Altman Z: 3.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$146.03

$35.91 premium

UndervaluedFair: $110.12Overvalued
PENUndervalued (+0.8%)

Margin of Safety

+0.8%

Fair Value

$340.90

Current Price

$322.23

$18.67 discount

UndervaluedFair: $340.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$277.42B10/10

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

PEN4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.8410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

EPS GrowthGrowth
38.3%8/10

Earnings expanding 38.3% YoY

Areas to Watch

NVS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.592/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

PEN2 concerns · Avg: 3.0/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

P/E RatioValuation
74.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PEN

The strongest argument for PEN centers on Altman Z-Score, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

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

Bear Case : PEN

The primary concerns for PEN are Price/Book, P/E Ratio. A P/E of 74.7x leaves little room for execution misses.

Key Dynamics to Monitor

NVS profiles as a declining stock while PEN is a growth play — different risk/reward profiles.

PEN carries more volatility with a beta of 0.73 — expect wider price swings.

PEN is growing revenue faster at 22.1% — sustainability is the question.

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

Bottom Line

PEN scores higher overall (64/100 vs 51/100) and 22.1% 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.

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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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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