WallStSmart

Novartis AG ADR (NVS)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 903% more annual revenue ($56.69B vs $5.65B). RMD leads profitability with a 27.0% profit margin vs 22.5%. RMD appears more attractively valued with a PEG of 1.31. RMD earns a higher WallStSmart Score of 67/100 (B-).

NVS

Buy

51

out of 100

Grade: C-

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

RMD

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 9.0Value: 4.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-50.3%)

Margin of Safety

-50.3%

Fair Value

$93.40

Current Price

$141.28

$47.88 premium

UndervaluedFair: $93.40Overvalued
RMDSignificantly Overvalued (-24.1%)

Margin of Safety

-24.1%

Fair Value

$209.18

Current Price

$221.97

$12.79 premium

UndervaluedFair: $209.18Overvalued

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

RMD6 strengths · Avg: 9.2/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
4.5310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.65B8/10

Generating 1.6B in free cash flow

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

RMD1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

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 : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.0% and operating margin at 30.9%. PEG of 1.31 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 : RMD

The primary concerns for RMD are EPS Growth.

Key Dynamics to Monitor

NVS profiles as a value stock while RMD is a mature play — different risk/reward profiles.

RMD carries more volatility with a beta of 0.77 — expect wider price swings.

RMD is growing revenue faster at 8.6% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

Bottom Line

RMD scores higher overall (67/100 vs 51/100), backed by strong 27.0% margins. Both earn "Strong 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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ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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