HUTCHMED DRC (HCM)vsZoetis Inc (ZTS)
HCM
HUTCHMED DRC
$12.82
-2.29%
HEALTHCARE · Cap: $2.36B
ZTS
Zoetis Inc
$72.97
+0.15%
HEALTHCARE · Cap: $30.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 1635% more annual revenue ($9.53B vs $549.12M). ZTS leads profitability with a 27.7% profit margin vs 3.3%. ZTS trades at a lower P/E of 12.0x. ZTS earns a higher WallStSmart Score of 58/100 (C).
HCM
Avoid28
out of 100
Grade: F
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.7%
Fair Value
$25.92
Current Price
$12.82
$13.10 discount
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
Every $100 of equity generates 38 in profit
Conservative balance sheet, low leverage
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
0.2% revenue growth
3.3% margin — thin
Operating margin of 0.3%
Weak financial health signals
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 : HCM
The strongest argument for HCM centers on Return on Equity, Debt/Equity, Price/Book.
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 : HCM
The primary concerns for HCM are Revenue Growth, Profit Margin, Operating Margin. A P/E of 135.7x leaves little room for execution misses. Thin 3.3% margins leave little buffer for downturns.
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
HCM 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.
HCM is growing revenue faster at 0.2% — sustainability is the question.
ZTS generates stronger free cash flow (538M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (58/100 vs 28/100), backed by strong 27.7% margins. HCM offers better value entry with a 41.7% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
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 - SPECIALTY & GENERIC Stocks
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