Merck & Company Inc (MRK)vsZoetis Inc (ZTS)
MRK
Merck & Company Inc
$150.91
+0.94%
HEALTHCARE · Cap: $355.10B
ZTS
Zoetis Inc
$71.33
-0.10%
HEALTHCARE · Cap: $29.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 599% more annual revenue ($66.57B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs 4.8%. MRK appears more attractively valued with a PEG of 2.64. ZTS earns a higher WallStSmart Score of 58/100 (C).
MRK
Hold36
out of 100
Grade: F
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$150.91
$67.87 premium
Margin of Safety
+11.0%
Fair Value
$144.59
Current Price
$71.33
$73.26 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
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
Trading at 8.9x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Trading at 9.1x book value
1.2% earnings growth
Expensive relative to growth rate
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
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 : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% 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
MRK 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.
MRK is growing revenue faster at 5.1% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (58/100 vs 36/100), 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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
Want to dig deeper into these stocks?