WallStSmart

Teva Pharma Industries Ltd ADR (TEVA)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teva Pharma Industries Ltd ADR generates 83% more annual revenue ($17.35B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 9.0%. TEVA appears more attractively valued with a PEG of 1.50. ZTS earns a higher WallStSmart Score of 64/100 (C+).

TEVA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 7.3Quality: 4.8
Piotroski: 6/9Altman Z: 0.28

ZTS

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 10.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TEVAUndervalued (+46.3%)

Margin of Safety

+46.3%

Fair Value

$63.92

Current Price

$35.73

$28.19 discount

UndervaluedFair: $63.92Overvalued
ZTSUndervalued (+19.4%)

Margin of Safety

+19.4%

Fair Value

$159.74

Current Price

$82.83

$76.91 discount

UndervaluedFair: $159.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TEVA2 strengths · Avg: 9.5/10
EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

ZTS5 strengths · Avg: 9.4/10
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

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Areas to Watch

TEVA4 concerns · Avg: 3.0/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Free Cash FlowQuality
$-208.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.282/10

Distress zone — elevated risk

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x 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 : TEVA

The strongest argument for TEVA centers on EPS Growth, Return on Equity.

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 : TEVA

The primary concerns for TEVA are P/E Ratio, Revenue Growth, Free Cash Flow.

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 0.86 — expect wider price swings.

ZTS is growing revenue faster at 3.0% — sustainability is the question.

ZTS generates stronger free cash flow (732M), 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 62/100), backed by strong 28.2% margins. TEVA offers better value entry with a 46.3% margin of safety. 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.

Teva Pharma Industries Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.

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 →

Want to dig deeper into these stocks?