WallStSmart

Novartis AG ADR (NVS)vsTransMedics Group Inc (TMDX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 8797% more annual revenue ($56.58B vs $635.89M). TMDX leads profitability with a 27.0% profit margin vs 23.9%. TMDX trades at a lower P/E of 16.9x. TMDX earns a higher WallStSmart Score of 50/100 (C-).

NVS

Hold

49

out of 100

Grade: D+

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

TMDX

Buy

50

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-69.7%)

Margin of Safety

-69.7%

Fair Value

$91.58

Current Price

$155.41

$63.83 premium

UndervaluedFair: $91.58Overvalued
TMDXUndervalued (+53.7%)

Margin of Safety

+53.7%

Fair Value

$287.77

Current Price

$68.44

$219.33 discount

UndervaluedFair: $287.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$296.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%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

TMDX4 strengths · Avg: 8.8/10
Return on EquityProfitability
34.8%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.2%8/10

Revenue surging 21.2% year-over-year

Areas to Watch

NVS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PEG RatioValuation
4.192/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

TMDX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Debt/EquityHealth
1.753/10

Elevated debt levels

EPS GrowthGrowth
-71.5%2/10

Earnings declined 71.5%

Free Cash FlowQuality
$-12.12M2/10

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 23.9% and operating margin at 30.5%.

Bull Case : TMDX

The strongest argument for TMDX centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 27.0% and operating margin at 7.7%. Revenue growth of 21.2% demonstrates continued momentum.

Bear Case : NVS

The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.

Bear Case : TMDX

The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.75 is elevated, increasing financial risk.

Key Dynamics to Monitor

NVS profiles as a declining stock while TMDX is a growth play — different risk/reward profiles.

TMDX carries more volatility with a beta of 1.88 — expect wider price swings.

TMDX is growing revenue faster at 21.2% — sustainability is the question.

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

Bottom Line

TMDX scores higher overall (50/100 vs 49/100), backed by strong 27.0% margins and 21.2% revenue growth. 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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TransMedics Group Inc

HEALTHCARE · MEDICAL DEVICES · USA

TransMedics Group, Inc., a commercial-stage medical technology company, is dedicated to transforming organ transplant therapy for patients with end-stage organ failure in the United States and internationally. The company is headquartered in Andover, Massachusetts.

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