WallStSmart

Bausch Health Companies Inc (BHC)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bausch Health Companies Inc generates 8% more annual revenue ($10.27B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 1.5%. BHC appears more attractively valued with a PEG of 0.01. BHC earns a higher WallStSmart Score of 69/100 (B-).

BHC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 10.0Quality: 5.5
Piotroski: 4/9Altman Z: 0.21

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

BHCUndervalued (+69.1%)

Margin of Safety

+69.1%

Fair Value

$19.66

Current Price

$5.08

$14.58 discount

UndervaluedFair: $19.66Overvalued
ZTSSignificantly Overvalued (-29.1%)

Margin of Safety

-29.1%

Fair Value

$99.69

Current Price

$116.71

$17.02 premium

UndervaluedFair: $99.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHC5 strengths · Avg: 9.6/10
PEG RatioValuation
0.0110/10

Growing faster than its price suggests

P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

Debt/EquityHealth
-38.2810/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

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
$51.09B9/10

Large-cap with strong market position

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

BHC3 concerns · Avg: 2.7/10
Market CapQuality
$1.85B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Price/BookValuation
14.9x4/10

Trading at 14.9x 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 : BHC

The strongest argument for BHC centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.01 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 : BHC

The primary concerns for BHC are Market Cap, Profit Margin, Altman Z-Score. Thin 1.5% 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.

BHC is growing revenue faster at 9.3% — 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

BHC scores higher overall (69/100 vs 64/100). Both earn "Strong 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.

Bausch Health Companies Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Bausch Health Companies Inc. develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology and dermatology. The company is headquartered in Laval, Canada.

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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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