Merck & Company Inc (MRK)vsZoetis Inc (ZTS)
MRK
Merck & Company Inc
$116.37
+0.60%
HEALTHCARE · Cap: $282.30B
ZTS
Zoetis Inc
$115.93
+0.61%
HEALTHCARE · Cap: $50.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 587% more annual revenue ($65.01B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs 28.1%. ZTS appears more attractively valued with a PEG of 1.88. ZTS earns a higher WallStSmart Score of 64/100 (C+).
MRK
Buy59
out of 100
Grade: C
ZTS
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-135.4%
Fair Value
$49.44
Current Price
$116.37
$66.93 premium
Margin of Safety
-29.5%
Fair Value
$99.36
Current Price
$115.93
$16.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
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
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Expensive relative to growth rate
Trading at 14.8x book value
3.0% revenue growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
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 : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS 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
ZTS carries more volatility with a beta of 0.95 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ZTS scores higher overall (64/100 vs 59/100), 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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 - GENERAL Stocks
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