WallStSmart

Viatris Inc (VTRS)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Viatris Inc generates 55% more annual revenue ($14.74B vs $9.53B). ZTS leads profitability with a 27.7% profit margin vs -2.8%. VTRS appears more attractively valued with a PEG of 1.05. ZTS earns a higher WallStSmart Score of 58/100 (C).

VTRS

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 3.5Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.55

ZTS

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 10.0Value: 6.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

VTRSSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$8.74

Current Price

$17.10

$8.36 premium

UndervaluedFair: $8.74Overvalued
ZTSUndervalued (+11.0%)

Margin of Safety

+11.0%

Fair Value

$144.59

Current Price

$71.33

$73.26 discount

UndervaluedFair: $144.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VTRS1 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

ZTS5 strengths · Avg: 9.8/10
P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
83.1%10/10

Every $100 of equity generates 83 in profit

Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

VTRS4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Return on EquityProfitability
-2.9%2/10

ROE of -2.9% — below average capital efficiency

EPS GrowthGrowth
-70.6%2/10

Earnings declined 70.6%

Altman Z-ScoreHealth
0.552/10

Distress zone — elevated risk

ZTS4 concerns · Avg: 3.0/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

EPS GrowthGrowth
1.2%4/10

1.2% earnings growth

PEG RatioValuation
6.642/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.2%2/10

Revenue declined 0.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : VTRS

The strongest argument for VTRS centers on Price/Book. PEG of 1.05 suggests the stock is reasonably priced for its growth.

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 : VTRS

The primary concerns for VTRS are Revenue Growth, Return on Equity, EPS Growth.

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

VTRS profiles as a turnaround stock while ZTS is a declining play — different risk/reward profiles.

VTRS carries more volatility with a beta of 0.88 — expect wider price swings.

VTRS is growing revenue faster at 4.9% — sustainability is the question.

ZTS generates stronger free cash flow (538M), providing more financial flexibility.

Bottom Line

ZTS scores higher overall (58/100 vs 48/100), 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.

Viatris Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Viatris Inc. is an American global healthcare company headquartered in Canonsburg, Pennsylvania.

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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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