Novartis AG ADR (NVS)vsZoetis Inc (ZTS)
NVS
Novartis AG ADR
$140.98
+0.21%
HEALTHCARE · Cap: $260.70B
ZTS
Zoetis Inc
$71.33
-0.10%
HEALTHCARE · Cap: $29.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 495% more annual revenue ($56.69B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs 22.5%. NVS appears more attractively valued with a PEG of 3.22. ZTS earns a higher WallStSmart Score of 58/100 (C).
NVS
Buy51
out of 100
Grade: C-
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.3%
Fair Value
$93.40
Current Price
$140.98
$47.58 premium
Margin of Safety
+11.0%
Fair Value
$144.59
Current Price
$71.33
$73.26 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 83 in profit
Strong operational efficiency at 40.7%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Areas to Watch
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Trading at 9.1x book value
1.2% earnings growth
Expensive relative to growth rate
Revenue declined 0.2%
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 22.5% and operating margin at 34.6%.
Bull Case : ZTS
The strongest argument for ZTS centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.7% and operating margin at 40.7%.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : ZTS
The primary concerns for ZTS are Price/Book, EPS Growth, PEG Ratio. Debt-to-equity of 2.93 is elevated, increasing financial risk.
Key Dynamics to Monitor
NVS profiles as a value stock while ZTS is a declining play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.73 — expect wider price swings.
NVS is growing revenue faster at 0.8% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (58/100 vs 51/100), backed by strong 27.7% margins. 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 →Zoetis Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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