WallStSmart

Novartis AG ADR (NVS)vsZimmer Biomet Holdings Inc (ZBH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 573% more annual revenue ($56.58B vs $8.41B). NVS leads profitability with a 23.9% profit margin vs 9.1%. ZBH appears more attractively valued with a PEG of 0.55. ZBH earns a higher WallStSmart Score of 71/100 (B).

NVS

Buy

51

out of 100

Grade: C-

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

ZBH

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 6.0Value: 8.0Quality: 5.3
Piotroski: 3/9
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
ZBHUndervalued (+35.9%)

Margin of Safety

+35.9%

Fair Value

$149.15

Current Price

$82.43

$66.72 discount

UndervaluedFair: $149.15Overvalued

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

ZBH3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.558/10

Growing faster than its price suggests

EPS GrowthGrowth
34.1%8/10

Earnings expanding 34.1% YoY

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%

ZBH2 concerns · Avg: 3.0/10
Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : ZBH

The strongest argument for ZBH centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.55 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

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

Bear Case : ZBH

The primary concerns for ZBH are Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

NVS profiles as a declining stock while ZBH is a value play — different risk/reward profiles.

ZBH carries more volatility with a beta of 0.61 — expect wider price swings.

ZBH is growing revenue faster at 9.3% — sustainability is the question.

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

Bottom Line

ZBH scores higher overall (71/100 vs 51/100). Both earn "Strong 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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Zimmer Biomet Holdings Inc

HEALTHCARE · MEDICAL DEVICES · USA

Zimmer Biomet is a publicly traded medical device company. The company is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.

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