WallStSmart

United Therapeutics Corporation (UTHR)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zoetis Inc generates 199% more annual revenue ($9.47B vs $3.17B). UTHR leads profitability with a 40.6% profit margin vs 28.2%. ZTS appears more attractively valued with a PEG of 2.10. ZTS earns a higher WallStSmart Score of 64/100 (C+).

UTHR

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 5/9Altman Z: 7.30

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

UTHRUndervalued (+11.2%)

Margin of Safety

+11.2%

Fair Value

$535.96

Current Price

$564.94

$28.98 discount

UndervaluedFair: $535.96Overvalued
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

UTHR4 strengths · Avg: 9.8/10
Profit MarginProfitability
40.6%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
41.7%10/10

Strong operational efficiency at 41.7%

Altman Z-ScoreHealth
7.3010/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.3%9/10

Every $100 of equity generates 20 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

UTHR3 concerns · Avg: 2.7/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

EPS GrowthGrowth
-12.2%2/10

Earnings declined 12.2%

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 : UTHR

The strongest argument for UTHR centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 40.6% and operating margin at 41.7%.

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 : UTHR

The primary concerns for UTHR are PEG Ratio, Revenue Growth, EPS Growth.

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

UTHR profiles as a declining stock while ZTS is a value play — different risk/reward profiles.

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.

Bottom Line

ZTS scores higher overall (64/100 vs 57/100), 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.

United Therapeutics Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

United Therapeutics Corporation, a biotechnology company, is dedicated to the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company is headquartered in Silver Spring, Maryland.

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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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