Emergent Biosolutions Inc (EBS)vsZoetis Inc (ZTS)
EBS
Emergent Biosolutions Inc
$8.07
-4.38%
HEALTHCARE · Cap: $419.99M
ZTS
Zoetis Inc
$79.44
-0.10%
HEALTHCARE · Cap: $33.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 1308% more annual revenue ($9.53B vs $676.80M). ZTS leads profitability with a 28.0% profit margin vs -1.3%. EBS appears more attractively valued with a PEG of 0.38. ZTS earns a higher WallStSmart Score of 66/100 (B-).
EBS
Hold48
out of 100
Grade: D+
ZTS
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.5%
Fair Value
$30.24
Current Price
$8.07
$22.17 discount
Margin of Safety
+11.5%
Fair Value
$145.45
Current Price
$79.44
$66.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 82 in profit
Strong operational efficiency at 36.6%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Distress zone — elevated risk
Smaller company, higher risk/reward
Elevated debt levels
ROE of -1.6% — below average capital efficiency
Expensive relative to growth rate
Trading at 10.1x book value
2.9% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : EBS
The strongest argument for EBS centers on PEG Ratio, Price/Book. PEG of 0.38 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 28.0% and operating margin at 36.6%.
Bear Case : EBS
The primary concerns for EBS are Altman Z-Score, Market Cap, Debt/Equity.
Bear Case : ZTS
The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.86 is elevated, increasing financial risk.
Key Dynamics to Monitor
EBS profiles as a turnaround stock while ZTS is a value play — different risk/reward profiles.
EBS carries more volatility with a beta of 2.33 — expect wider price swings.
ZTS is growing revenue faster at 2.9% — sustainability is the question.
ZTS generates stronger free cash flow (291M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (66/100 vs 48/100), backed by strong 28.0% margins. EBS offers better value entry with a 63.5% margin of safety. Both earn "Strong 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.
Emergent Biosolutions Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Emergent BioSolutions Inc., a life sciences company, focuses on providing preparedness and response products and solutions for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHT). The company is headquartered in Gaithersburg, Maryland.
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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