WallStSmart

Elanco Animal Health (ELAN)vsUnited Therapeutics Corporation (UTHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Elanco Animal Health generates 54% more annual revenue ($4.89B vs $3.17B). UTHR leads profitability with a 40.6% profit margin vs -5.0%. UTHR appears more attractively valued with a PEG of 2.24. UTHR earns a higher WallStSmart Score of 57/100 (C).

ELAN

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 3.5Value: 3.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.87

UTHR

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 5/9Altman Z: 8.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELANSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$19.48

Current Price

$23.63

$4.15 premium

UndervaluedFair: $19.48Overvalued
UTHRUndervalued (+2.5%)

Margin of Safety

+2.5%

Fair Value

$487.82

Current Price

$549.87

$62.05 discount

UndervaluedFair: $487.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELAN1 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

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
8.5610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

ELAN4 concerns · Avg: 2.0/10
PEG RatioValuation
4.042/10

Expensive relative to growth rate

Return on EquityProfitability
-3.7%2/10

ROE of -3.7% — below average capital efficiency

EPS GrowthGrowth
-15.4%2/10

Earnings declined 15.4%

Free Cash FlowQuality
$-38.00M2/10

Negative free cash flow — burning cash

UTHR3 concerns · Avg: 2.7/10
PEG RatioValuation
2.244/10

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%

Comparative Analysis Report

WallStSmart Research

Bull Case : ELAN

The strongest argument for ELAN centers on Price/Book. Revenue growth of 14.9% demonstrates continued momentum.

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%.

Bear Case : ELAN

The primary concerns for ELAN are PEG Ratio, Return on Equity, EPS Growth.

Bear Case : UTHR

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

Key Dynamics to Monitor

ELAN profiles as a turnaround stock while UTHR is a declining play — different risk/reward profiles.

ELAN carries more volatility with a beta of 1.70 — expect wider price swings.

ELAN is growing revenue faster at 14.9% — sustainability is the question.

UTHR generates stronger free cash flow (363M), providing more financial flexibility.

Bottom Line

UTHR scores higher overall (57/100 vs 44/100), backed by strong 40.6% 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.

Elanco Animal Health

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.

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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