WallStSmart

Novartis AG ADR (NVS)vsXOMA Corp (XOMA)

VS

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

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 9.0Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.96

XOMA

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: -6.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-52.5%)

Margin of Safety

-52.5%

Fair Value

$109.60

Current Price

$147.85

$38.25 premium

UndervaluedFair: $109.60Overvalued
XOMAUndervalued (+2.2%)

Margin of Safety

+2.2%

Fair Value

$23.79

Current Price

$40.94

$17.15 discount

UndervaluedFair: $23.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$282.11B10/10

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

XOMA3 strengths · Avg: 10.0/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
60.8%10/10

Keeps 61 of every $100 in revenue as profit

Revenue GrowthGrowth
57.9%10/10

Revenue surging 57.9% year-over-year

Areas to Watch

NVS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

XOMA4 concerns · Avg: 3.0/10
P/E RatioValuation
28.1x4/10

Moderate valuation

Market CapQuality
$497.18M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

EPS GrowthGrowth
-47.8%2/10

Earnings declined 47.8%

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 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.

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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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