Novartis AG ADR (NVS)vsRoyalty Pharma Plc (RPRX)
NVS
Novartis AG ADR
$148.18
-1.02%
HEALTHCARE · Cap: $286.44B
RPRX
Royalty Pharma Plc
$46.35
-1.26%
HEALTHCARE · Cap: $26.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 2283% more annual revenue ($56.67B vs $2.38B). RPRX leads profitability with a 32.4% profit margin vs 24.7%. NVS appears more attractively valued with a PEG of 2.54. RPRX earns a higher WallStSmart Score of 57/100 (C).
NVS
Buy51
out of 100
Grade: C-
RPRX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-243.2%
Fair Value
$48.69
Current Price
$148.18
$99.49 premium
Margin of Safety
-17.3%
Fair Value
$37.74
Current Price
$46.35
$8.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Areas to Watch
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
Moderate valuation
4.8% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.
Bull Case : RPRX
The strongest argument for RPRX centers on Profit Margin, Operating Margin. Profitability is solid with margins at 32.4% and operating margin at 57.7%.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Bear Case : RPRX
The primary concerns for RPRX are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.50 — expect wider price swings.
RPRX is growing revenue faster at 4.8% — sustainability is the question.
NVS generates stronger free cash flow (1.6B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RPRX scores higher overall (57/100 vs 51/100), backed by strong 32.4% margins. 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.
Visit Website →Royalty Pharma Plc
HEALTHCARE · BIOTECHNOLOGY · USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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