WallStSmart

Novartis AG ADR (NVS)vsUnited Therapeutics Corporation (UTHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 1685% more annual revenue ($56.58B vs $3.17B). UTHR leads profitability with a 40.6% profit margin vs 23.9%. UTHR appears more attractively valued with a PEG of 2.38. UTHR earns a higher WallStSmart Score of 57/100 (C).

NVS

Buy

51

out of 100

Grade: C-

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

UTHR

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 5/9Altman Z: 7.30
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
UTHRUndervalued (+11.2%)

Margin of Safety

+11.2%

Fair Value

$535.96

Current Price

$564.94

$28.98 discount

UndervaluedFair: $535.96Overvalued

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

UTHR4 strengths · Avg: 9.8/10
Profit MarginProfitability
40.6%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
41.7%10/10

Strong operational efficiency at 41.7%

Altman Z-ScoreHealth
7.3010/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.3%9/10

Every $100 of equity generates 20 in profit

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%

UTHR3 concerns · Avg: 2.7/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

EPS GrowthGrowth
-12.2%2/10

Earnings declined 12.2%

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 : UTHR

The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 40.6% and operating margin at 41.7%.

Bear Case : NVS

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

Bear Case : UTHR

The primary concerns for UTHR are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

UTHR carries more volatility with a beta of 0.59 — expect wider price swings.

NVS is growing revenue faster at -0.7% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UTHR scores higher overall (57/100 vs 51/100), backed by strong 40.6% margins. 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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United Therapeutics Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.

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