WallStSmart

Novartis AG ADR (NVS)vsSelect Medical Holdings (SEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 938% more annual revenue ($56.58B vs $5.45B). NVS leads profitability with a 23.9% profit margin vs 2.7%. SEM appears more attractively valued with a PEG of 2.26. SEM earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

SEM

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 5.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued

Intrinsic value data unavailable for SEM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%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

SEM2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

SEM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.744/10

Distress zone — elevated risk

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

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 : SEM

The strongest argument for SEM centers on Price/Book, P/E Ratio.

Bear Case : NVS

The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.

Bear Case : SEM

The primary concerns for SEM are PEG Ratio, Altman Z-Score, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SEM carries more volatility with a beta of 0.88 — expect wider price swings.

SEM is growing revenue faster at 7.2% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 51/100), backed by strong 23.9% 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 →

Select Medical Holdings

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company is headquartered in Mechanicsburg, Pennsylvania.

Want to dig deeper into these stocks?