Novartis AG ADR (NVS)vsXOMA Royalty Corporation (XOMA)
NVS
Novartis AG ADR
$148.38
-0.96%
HEALTHCARE · Cap: $273.77B
XOMA
XOMA Royalty Corporation
$42.09
-0.73%
HEALTHCARE · Cap: $522.84M
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 116424% more annual revenue ($56.58B vs $48.55M). XOMA leads profitability with a 69.6% profit margin vs 23.9%. NVS trades at a lower P/E of 20.6x. XOMA earns a higher WallStSmart Score of 49/100 (D+).
NVS
Hold49
out of 100
Grade: D+
XOMA
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.1%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Margin of Safety
-20.6%
Fair Value
$19.29
Current Price
$42.09
$22.80 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Keeps 70 of every $100 in revenue as profit
Earnings expanding 207.9% YoY
Every $100 of equity generates 28 in profit
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Moderate valuation
Smaller company, higher risk/reward
Elevated debt levels
Revenue declined 22.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : XOMA
The strongest argument for XOMA centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 69.6% and operating margin at -3.9%.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : XOMA
The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.
Key Dynamics to Monitor
XOMA carries more volatility with a beta of 0.90 — 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
NVS scores higher overall (49/100 vs 49/100), backed by strong 23.9% margins. Both earn "Hold" 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.
Visit Website →XOMA Royalty Corporation
HEALTHCARE · BIOTECHNOLOGY · USA
XOMA Corporation, a biotech royalty aggregator, discovers and develops therapeutic candidates in the United States, Europe, and Asia Pacific. The company is headquartered in Emeryville, California.
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