Novartis AG vs VERTEX PHARMACEUTICALS INC / MA, two Drug Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
29.15 against 21.54: the multiples on Vertex and Novartis, eight turns of premium for the specialist over the generalist on nearly matched economics. Vertex earns the higher net margin, 35.5% against 25.6%; Novartis the higher return on equity, 30% against 22.4%, at 2.4 times the scale. Both are debt-free. Novartis converts nearly double the free cash relative to price, 5.8% against 3%. What the premium prices is Vertex's monopoly depth in cystic fibrosis against Novartis' diversified breadth, concentration valued above insurance. Eight turns for owning one market outright versus renting positions in many: the sector rarely states its preference for moats this legibly.
Comparison updated 2026-07-10.
| Metric | NVS | VRTX |
|---|---|---|
| Price | $155.27 | $491.10 |
| Market cap | $301.1B | $125.9B |
| Sector | Drug Manufacturers | Drug Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | +8.3% | +19.8% |
| P/E | 21.5 | 29.1 |
| P/B | 6.47 | 6.50 |
| P/S | 5.52 | 10.30 |
| EV/EBITDA | 16.4 | 24.6 |
| Revenue growth | +6.4% | +10.1% |
| Gross margin | 78.8% | — |
| Operating margin | 32.4% | 38.1% |
| Net margin | 25.6% | 35.5% |
| Return on equity | 30.0% | 22.4% |
| Return on assets | 12.6% | 16.4% |
| Return on invested capital | 32.4% | 19.9% |
| FCF yield | 5.8% | 3.0% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.12 | 3.02 |
| Altman Z (solvency) | 3.86 | 7.73 |
| Piotroski F (quality) | 8 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.