WallStSmart

Novartis AG ADR (NVS)vsTheravance Biopharma Inc (TBPH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 54250% more annual revenue ($56.69B vs $104.31M). TBPH leads profitability with a 51.6% profit margin vs 22.5%. TBPH trades at a lower P/E of 16.4x. 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

TBPH

Hold

42

out of 100

Grade: D

Growth: 5.3Profit: 7.0Value: 7.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-53.7%)

Margin of Safety

-53.7%

Fair Value

$93.40

Current Price

$145.46

$52.06 premium

UndervaluedFair: $93.40Overvalued
TBPHUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$66.38

Current Price

$17.03

$49.35 discount

UndervaluedFair: $66.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$271.25B10/10

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

TBPH3 strengths · Avg: 9.0/10
Profit MarginProfitability
51.6%10/10

Keeps 52 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

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
3.312/10

Expensive relative to growth rate

TBPH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$884.18M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-20.9%2/10

Revenue declined 20.9%

Free Cash FlowQuality
$-8.88M2/10

Negative free cash flow — burning cash

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 : TBPH

The strongest argument for TBPH centers on Profit Margin, Debt/Equity, P/E Ratio. Profitability is solid with margins at 51.6% and operating margin at 8.9%.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Bear Case : TBPH

The primary concerns for TBPH are EPS Growth, Market Cap, Revenue Growth.

Key Dynamics to Monitor

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

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

NVS is growing revenue faster at 0.8% — 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 42/100), backed by strong 22.5% margins. TBPH offers better value entry with a 70.6% 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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Theravance Biopharma Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Theravance Biopharma, Inc., a diversified biopharmaceutical company, discovers, develops, and markets organ-selective drugs in the United States, Europe, and Asia. The company is headquartered in George Town, the Cayman Islands.

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