WallStSmart

Novartis AG ADR (NVS)vsKoninklijke Philips NV ADR (PHG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 221% more annual revenue ($56.58B vs $17.64B). NVS leads profitability with a 23.9% profit margin vs 5.5%. PHG appears more attractively valued with a PEG of 0.87. PHG earns a higher WallStSmart Score of 57/100 (C).

NVS

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

PHG

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-62.1%)

Margin of Safety

-62.1%

Fair Value

$91.39

Current Price

$148.38

$56.99 premium

UndervaluedFair: $91.39Overvalued
PHGSignificantly Overvalued (-55.6%)

Margin of Safety

-55.6%

Fair Value

$20.61

Current Price

$26.11

$5.50 premium

UndervaluedFair: $20.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$273.77B10/10

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

PHG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
97.2%10/10

Earnings expanding 97.2% YoY

PEG RatioValuation
0.878/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

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
3.932/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

PHG3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Revenue GrowthGrowth
-4.7%2/10

Revenue declined 4.7%

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 : PHG

The strongest argument for PHG centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.87 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

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

Bear Case : PHG

The primary concerns for PHG are Altman Z-Score, Profit Margin, Revenue Growth.

Key Dynamics to Monitor

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

PHG carries more volatility with a beta of 0.93 — expect wider price swings.

NVS is growing revenue faster at -0.7% — sustainability is the question.

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

Bottom Line

PHG scores higher overall (57/100 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.

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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Koninklijke Philips NV ADR

HEALTHCARE · MEDICAL DEVICES · USA

Koninklijke Philips NV is a healthcare technology company in North America, Greater China and internationally. The company is headquartered in Amsterdam, the Netherlands.

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