Elanco Animal Health (ELAN)vsZoetis Inc (ZTS)
ELAN
Elanco Animal Health
$23.63
-4.37%
HEALTHCARE · Cap: $12.07B
ZTS
Zoetis Inc
$79.44
-0.10%
HEALTHCARE · Cap: $33.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 95% more annual revenue ($9.53B vs $4.89B). ZTS leads profitability with a 28.0% profit margin vs -5.0%. ZTS appears more attractively valued with a PEG of 1.91. ZTS earns a higher WallStSmart Score of 66/100 (B-).
ELAN
Hold44
out of 100
Grade: D
ZTS
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.0%
Fair Value
$19.48
Current Price
$23.63
$4.15 premium
Margin of Safety
+11.8%
Fair Value
$145.86
Current Price
$79.44
$66.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 82 in profit
Strong operational efficiency at 36.6%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Earnings declined 15.4%
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 10.1x book value
2.9% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on Price/Book. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.0% and operating margin at 36.6%.
Bear Case : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, EPS Growth.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.86 is elevated, increasing financial risk.
Key Dynamics to Monitor
ELAN profiles as a turnaround stock while ZTS is a value play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.70 — expect wider price swings.
ELAN is growing revenue faster at 14.9% — sustainability is the question.
ZTS generates stronger free cash flow (291M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (66/100 vs 44/100), backed by strong 28.0% margins. Both earn "Strong 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.
Elanco Animal Health
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.
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.
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