WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 566% more annual revenue ($56.69B vs $8.51B). NVS leads profitability with a 22.5% profit margin vs 9.5%. ZBH appears more attractively valued with a PEG of 0.62. ZBH earns a higher WallStSmart Score of 67/100 (B-).

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.96

ZBH

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 7.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVSSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$93.29

Current Price

$137.16

$43.87 premium

UndervaluedFair: $93.29Overvalued
ZBHUndervalued (+21.5%)

Margin of Safety

+21.5%

Fair Value

$121.85

Current Price

$93.49

$28.36 discount

UndervaluedFair: $121.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVS5 strengths · Avg: 9.4/10
Market CapQuality
$260.70B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$5.57B8/10

Generating 5.6B in free cash flow

ZBH3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.628/10

Growing faster than its price suggests

EPS GrowthGrowth
33.8%8/10

Earnings expanding 33.8% YoY

Areas to Watch

NVS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.183/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

ZBH3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — 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 22.5% and operating margin at 34.6%.

Bull Case : ZBH

The strongest argument for ZBH centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.

Bear Case : ZBH

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

Key Dynamics to Monitor

NVS carries more volatility with a beta of 0.49 — expect wider price swings.

ZBH is growing revenue faster at 4.8% — sustainability is the question.

NVS generates stronger free cash flow (5.6B), providing more financial flexibility.

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

Bottom Line

ZBH scores higher overall (67/100 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.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?