WallStSmart

Takeda Pharmaceutical Co Ltd ADR (TAK)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Takeda Pharmaceutical Co Ltd ADR generates 47059% more annual revenue ($4.46T vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.40. ZTS earns a higher WallStSmart Score of 64/100 (C+).

TAK

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.7Quality: 5.0

ZTS

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 10.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TAKSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$10.30

Current Price

$17.82

$7.52 premium

UndervaluedFair: $10.30Overvalued
ZTSSignificantly Overvalued (-26.1%)

Margin of Safety

-26.1%

Fair Value

$102.01

Current Price

$115.67

$13.66 premium

UndervaluedFair: $102.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TAK6 strengths · Avg: 9.8/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
150.0%10/10

Every $100 of equity generates 150 in profit

EPS GrowthGrowth
330.2%10/10

Earnings expanding 330.2% YoY

Free Cash FlowQuality
$317.47B10/10

Generating 317.5B in free cash flow

Market CapQuality
$57.56B9/10

Large-cap with strong market position

ZTS5 strengths · Avg: 9.6/10
Return on EquityProfitability
66.0%10/10

Every $100 of equity generates 66 in profit

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.07B9/10

Large-cap with strong market position

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

TAK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

P/E RatioValuation
82.8x2/10

Premium valuation, high expectations priced in

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

Price/BookValuation
14.8x4/10

Trading at 14.8x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

Debt/EquityHealth
2.851/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : TAK

The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : ZTS

The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.2% and operating margin at 34.7%.

Bear Case : TAK

The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 82.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Bear Case : ZTS

The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

ZTS carries more volatility with a beta of 0.95 — expect wider price swings.

TAK is growing revenue faster at 4.2% — sustainability is the question.

TAK generates stronger free cash flow (317.5B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ZTS scores higher overall (64/100 vs 60/100), backed by strong 28.2% 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.

Takeda Pharmaceutical Co Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.

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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