WallStSmart

Novartis AG ADR (NVS)vsToyota Motor Corporation ADR (TM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toyota Motor Corporation ADR generates 89070% more annual revenue ($50.45T vs $56.58B). NVS leads profitability with a 23.9% profit margin vs 7.3%. TM appears more attractively valued with a PEG of 1.54. TM earns a higher WallStSmart Score of 55/100 (C).

NVS

Buy

51

out of 100

Grade: C-

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

TM

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 6.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$110.12

Current Price

$146.03

$35.91 premium

UndervaluedFair: $110.12Overvalued

Intrinsic value data unavailable for TM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$277.42B10/10

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

TM3 strengths · Avg: 10.0/10
Market CapQuality
$230.96B10/10

Mega-cap, among the largest globally

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Free Cash FlowQuality
$592.05B10/10

Generating 592.1B in free cash flow

Areas to Watch

NVS4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.592/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

TM4 concerns · Avg: 3.3/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
16.0x4/10

Trading at 16.0x book value

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

EPS GrowthGrowth
-42.3%2/10

Earnings declined 42.3%

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 : TM

The strongest argument for TM centers on Market Cap, P/E Ratio, Free Cash Flow.

Bear Case : NVS

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

Bear Case : TM

The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

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

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

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

TM generates stronger free cash flow (592.1B), providing more financial flexibility.

Bottom Line

TM scores higher overall (55/100 vs 51/100). 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 →

Toyota Motor Corporation ADR

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.

Want to dig deeper into these stocks?