Novartis AG ADR (NVS)vsR1 RCM Inc (RCM)
NVS
Novartis AG ADR
$148.38
-0.55%
HEALTHCARE · Cap: $273.77B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 2196% more annual revenue ($56.58B vs $2.46B). NVS leads profitability with a 23.9% profit margin vs -2.5%. RCM appears more attractively valued with a PEG of 2.06. NVS earns a higher WallStSmart Score of 49/100 (D+).
NVS
Hold49
out of 100
Grade: D+
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.1%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Margin of Safety
+27.7%
Fair Value
$19.79
Current Price
$14.31
$5.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Expensive relative to growth rate
Operating margin of 3.8%
ROE of -2.2% — below average capital efficiency
Earnings declined 99.3%
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 23.9% and operating margin at 30.5%.
Bull Case : RCM
The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : RCM
The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.
Key Dynamics to Monitor
NVS profiles as a declining stock while RCM is a turnaround play — different risk/reward profiles.
RCM carries more volatility with a beta of 0.84 — expect wider price swings.
RCM is growing revenue faster at 14.7% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NVS scores higher overall (49/100 vs 39/100), backed by strong 23.9% margins. RCM offers better value entry with a 27.7% margin of safety. 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 →R1 RCM Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
R1 RCM Inc (RCM) is a leading provider of technology-driven revenue cycle management solutions that significantly enhance the financial performance of healthcare organizations across the United States. By leveraging advanced analytics and deep industry expertise, R1 RCM offers comprehensive services that optimize billing processes and improve operational efficiency for hospitals and outpatient facilities alike. The company’s innovative approach not only enhances revenue capture but also elevates patient experiences, establishing R1 RCM as a critical player in the evolving healthcare sector. With a strong emphasis on expanding its service offerings and increasing market share, R1 RCM is strategically positioned to capitalize on the growing demand for sophisticated revenue cycle management services.
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