Novartis AG ADR (NVS)vsXOMA Corp (XOMA)
NVS
Novartis AG ADR
$147.85
+3.44%
HEALTHCARE · Cap: $282.11B
XOMA
XOMA Corp
$40.94
-0.12%
HEALTHCARE · Cap: $497.18M
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 108393% more annual revenue ($56.58B vs $52.15M). XOMA leads profitability with a 60.8% profit margin vs 23.9%. NVS trades at a lower P/E of 21.2x. XOMA earns a higher WallStSmart Score of 52/100 (C-).
NVS
Buy51
out of 100
Grade: C-
XOMA
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.5%
Fair Value
$109.60
Current Price
$147.85
$38.25 premium
Margin of Safety
+2.2%
Fair Value
$23.79
Current Price
$40.94
$17.15 discount
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
Every $100 of equity generates 34 in profit
Keeps 61 of every $100 in revenue as profit
Revenue surging 57.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
Moderate valuation
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 47.8%
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 Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 60.8% and operating margin at 15.9%. Revenue growth of 57.9% demonstrates continued momentum.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
Bear Case : XOMA
The primary concerns for XOMA are P/E Ratio, Market Cap, Debt/Equity.
Key Dynamics to Monitor
NVS profiles as a declining stock while XOMA is a growth play — different risk/reward profiles.
XOMA carries more volatility with a beta of 0.68 — expect wider price swings.
XOMA is growing revenue faster at 57.9% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
XOMA scores higher overall (52/100 vs 51/100), backed by strong 60.8% margins and 57.9% 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.
Visit Website →XOMA Corp
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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