Novartis AG ADR (NVS)vsZoetis Inc (ZTS)
NVS
Novartis AG ADR
$161.93
+0.38%
HEALTHCARE · Cap: $303.67B
ZTS
Zoetis Inc
$82.11
-7.95%
HEALTHCARE · Cap: $32.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 502% more annual revenue ($57.36B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs 17.5%. NVS appears more attractively valued with a PEG of 3.84. ZTS earns a higher WallStSmart Score of 58/100 (C).
NVS
Hold48
out of 100
Grade: D+
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-68.3%
Fair Value
$95.56
Current Price
$161.93
$66.37 premium
Margin of Safety
+10.3%
Fair Value
$143.36
Current Price
$82.11
$61.25 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 34.3%
Generating 5.6B in free cash flow
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
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.2x book value
4.7% revenue growth
Grey zone — moderate risk
Trading at 10.8x 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 17.5% and operating margin at 34.3%.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 27.7% and operating margin at 40.7%.
Bear Case : NVS
The primary concerns for NVS are P/E Ratio, Price/Book, Revenue Growth.
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 0.74 — expect wider price swings.
NVS is growing revenue faster at 4.7% — 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 48/100), backed by strong 27.7% margins. Both earn "Buy" and "Hold" 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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