Elanco Animal Health (ELAN)vsZoetis Inc (ZTS)
ELAN
Elanco Animal Health
$23.17
+1.36%
HEALTHCARE · Cap: $11.98B
ZTS
Zoetis Inc
$72.97
+0.15%
HEALTHCARE · Cap: $30.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 90% more annual revenue ($9.53B vs $5.02B). ZTS leads profitability with a 27.7% profit margin vs -4.0%. ELAN appears more attractively valued with a PEG of 4.04. ZTS earns a higher WallStSmart Score of 58/100 (C).
ELAN
Buy52
out of 100
Grade: C-
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.5%
Fair Value
$19.85
Current Price
$23.17
$3.32 premium
Margin of Safety
+11.3%
Fair Value
$145.00
Current Price
$72.97
$72.03 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 440.5% YoY
Reasonable price relative to book value
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
Expensive relative to growth rate
ROE of -3.0% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Trading at 9.3x book value
1.2% earnings growth
Expensive relative to growth rate
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 10.2% demonstrates continued momentum.
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 : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, Altman Z-Score.
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
ELAN profiles as a turnaround stock while ZTS is a declining play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.68 — expect wider price swings.
ELAN is growing revenue faster at 10.2% — sustainability is the question.
ZTS generates stronger free cash flow (538M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (58/100 vs 52/100), 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.
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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