WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 8381% more annual revenue ($56.69B vs $668.47M). TMDX leads profitability with a 22.7% profit margin vs 22.5%. TMDX appears more attractively valued with a PEG of 0.74. TMDX earns a higher WallStSmart Score of 62/100 (C+).

NVS

Buy

51

out of 100

Grade: C-

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

TMDX

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 8.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.67
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
TMDXUndervalued (+53.7%)

Margin of Safety

+53.7%

Fair Value

$287.78

Current Price

$85.29

$202.49 discount

UndervaluedFair: $287.78Overvalued

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

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

Every $100 of equity generates 35 in profit

Profit MarginProfitability
22.7%9/10

Keeps 23 of every $100 in revenue as profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

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

TMDX3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Debt/EquityHealth
1.673/10

Elevated debt levels

EPS GrowthGrowth
-55.8%2/10

Earnings declined 55.8%

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 : TMDX

The strongest argument for TMDX centers on Return on Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 22.7% and operating margin at 12.5%. Revenue growth of 20.7% demonstrates continued momentum.

Bear Case : NVS

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

Bear Case : TMDX

The primary concerns for TMDX are Altman Z-Score, Debt/Equity, EPS Growth. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

NVS profiles as a value 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 20.7% — sustainability is the question.

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

Bottom Line

TMDX scores higher overall (62/100 vs 51/100), backed by strong 22.7% margins and 20.7% revenue growth. 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.

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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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