Merck & Company Inc (MRK)vsZoetis Inc (ZTS)
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
ZTS
Zoetis Inc
$82.11
-7.95%
HEALTHCARE · Cap: $32.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 607% more annual revenue ($67.38B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs 3.6%. MRK appears more attractively valued with a PEG of 2.82. ZTS earns a higher WallStSmart Score of 58/100 (C).
MRK
Hold44
out of 100
Grade: D
ZTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Margin of Safety
+10.3%
Fair Value
$143.36
Current Price
$82.11
$61.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
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
Attractively priced relative to earnings
Areas to Watch
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Trading at 10.8x 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, Operating Margin, Free Cash Flow.
Bull Case : ZTS
The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. 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, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% 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 0.74 — expect wider price swings.
MRK is growing revenue faster at 4.7% — 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 44/100), 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
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