HUTCHMED DRC (HCM)vsZoetis Inc (ZTS)
HCM
HUTCHMED DRC
$14.15
+0.21%
HEALTHCARE · Cap: $2.52B
ZTS
Zoetis Inc
$116.71
+0.67%
HEALTHCARE · Cap: $51.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoetis Inc generates 1626% more annual revenue ($9.47B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 28.2%. HCM trades at a lower P/E of 5.3x. ZTS earns a higher WallStSmart Score of 64/100 (C+).
HCM
Hold42
out of 100
Grade: D
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.1%
Fair Value
$18.02
Current Price
$14.15
$3.87 discount
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
Attractively priced relative to earnings
Every $100 of equity generates 45 in profit
Keeps 83 of every $100 in revenue as profit
Conservative balance sheet, low leverage
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
Trading at 9.8x book value
Weak financial health signals
Revenue declined 16.5%
Earnings declined 98.1%
Expensive relative to growth rate
Trading at 14.9x book value
3.0% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 83.3% and operating margin at -13.2%.
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 : HCM
The primary concerns for HCM are Price/Book, Piotroski F-Score, Revenue Growth.
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
HCM profiles as a declining stock while ZTS is a value play — different risk/reward profiles.
ZTS carries more volatility with a beta of 0.95 — expect wider price swings.
ZTS is growing revenue faster at 3.0% — sustainability is the question.
ZTS generates stronger free cash flow (732M), providing more financial flexibility.
Bottom Line
ZTS scores higher overall (64/100 vs 42/100), backed by strong 28.2% margins. HCM offers better value entry with a 16.1% margin of safety. 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.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
Visit Website →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.
Visit Website →Compare with Other DRUG MANUFACTURERS - SPECIALTY & GENERIC Stocks
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