WallStSmart

Novartis AG ADR (NVS)vsSTAAR Surgical Company (STAA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 19424% more annual revenue ($56.69B vs $290.38M). NVS leads profitability with a 22.5% profit margin vs -7.2%. STAA appears more attractively valued with a PEG of 0.76. NVS earns a higher WallStSmart Score of 51/100 (C-).

NVS

Buy

51

out of 100

Grade: C-

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

STAA

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.7Quality: 7.0
Piotroski: 1/9Altman Z: 1.87
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-66.5%)

Margin of Safety

-66.5%

Fair Value

$92.73

Current Price

$156.33

$63.60 premium

UndervaluedFair: $92.73Overvalued
STAAUndervalued (+44.6%)

Margin of Safety

+44.6%

Fair Value

$31.15

Current Price

$25.12

$6.03 discount

UndervaluedFair: $31.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$291.32B10/10

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

STAA3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
119.6%10/10

Revenue surging 119.6% year-over-year

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.768/10

Growing faster than its price suggests

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
3.562/10

Expensive relative to growth rate

STAA4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.874/10

Grey zone — moderate risk

Market CapQuality
$1.21B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Return on EquityProfitability
-6.0%2/10

ROE of -6.0% — below average capital efficiency

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 : STAA

The strongest argument for STAA centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 119.6% demonstrates continued momentum. PEG of 0.76 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 : STAA

The primary concerns for STAA are Altman Z-Score, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

NVS profiles as a value stock while STAA is a hypergrowth play — different risk/reward profiles.

STAA carries more volatility with a beta of 1.23 — expect wider price swings.

STAA is growing revenue faster at 119.6% — sustainability is the question.

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

Bottom Line

NVS scores higher overall (51/100 vs 47/100), backed by strong 22.5% margins. STAA offers better value entry with a 44.6% margin of safety. Both earn "Buy" 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.

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STAAR Surgical Company

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

STAAR Surgical Company designs, develops, manufactures, markets and sells implantable eye lenses and supplemental delivery systems for placing the lenses in the eye. The company is headquartered in Lake Forest, California.

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