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 ($56.69B vs $17.66B). NVS leads profitability with a 22.5% profit margin vs 6.3%. PHG appears more attractively valued with a PEG of 0.79. PHG earns a higher WallStSmart Score of 63/100 (C+).

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

PHG

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued
PHGSignificantly Overvalued (-55.6%)

Margin of Safety

-55.6%

Fair Value

$20.61

Current Price

$24.59

$3.98 premium

UndervaluedFair: $20.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

PHG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
61.4%10/10

Earnings expanding 61.4% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

NVS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.183/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

PHG3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

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 22.5% and operating margin at 34.6%.

Bull Case : PHG

The strongest argument for PHG centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Bear Case : PHG

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

Key Dynamics to Monitor

PHG carries more volatility with a beta of 0.91 — expect wider price swings.

NVS is growing revenue faster at 0.8% — 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

PHG scores higher overall (63/100 vs 51/100). 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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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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