Elanco Animal Health (ELAN)vsZoetis Inc (ZTS)
ELAN
Elanco Animal Health
$25.50
+2.41%
HEALTHCARE · Cap: $12.38B
ZTS
Zoetis Inc
$116.71
+0.67%
HEALTHCARE · Cap: $51.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 101% more annual revenue ($9.47B vs $4.71B). ZTS leads profitability with a 28.2% profit margin vs -4.9%. ZTS appears more attractively valued with a PEG of 1.87. ZTS earns a higher WallStSmart Score of 64/100 (C+).
ELAN
Buy51
out of 100
Grade: C-
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ELAN.
Margin of Safety
-29.1%
Fair Value
$99.69
Current Price
$116.71
$17.02 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 116.7% YoY
Reasonable price relative to book value
Every $100 of equity generates 66 in profit
Strong operational efficiency at 34.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Operating margin of 2.3%
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 14.9x book value
3.0% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 12.2% demonstrates continued momentum.
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 : ELAN
The primary concerns for ELAN are Operating Margin, PEG Ratio, Return on Equity.
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
ELAN profiles as a turnaround stock while ZTS is a value play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.89 — expect wider price swings.
ELAN is growing revenue faster at 12.2% — sustainability is the question.
ZTS generates stronger free cash flow (732M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (64/100 vs 51/100), 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.
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.
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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