WallStSmart

Teva Pharma Industries Ltd ADR (TEVA)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teva Pharma Industries Ltd ADR generates 82% more annual revenue ($17.32B vs $9.53B). ZTS leads profitability with a 28.0% profit margin vs 4.1%. TEVA appears more attractively valued with a PEG of 0.96. ZTS earns a higher WallStSmart Score of 66/100 (B-).

TEVA

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 5.5Value: 5.0Quality: 4.0
Piotroski: 6/9Altman Z: 0.28

ZTS

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 10.0Value: 6.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for TEVA.

ZTSUndervalued (+10.8%)

Margin of Safety

+10.8%

Fair Value

$144.23

Current Price

$72.66

$71.57 discount

UndervaluedFair: $144.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TEVA2 strengths · Avg: 9.0/10
EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

PEG RatioValuation
0.968/10

Growing faster than its price suggests

ZTS5 strengths · Avg: 9.4/10
Return on EquityProfitability
81.8%10/10

Every $100 of equity generates 82 in profit

Operating MarginProfitability
36.6%10/10

Strong operational efficiency at 36.6%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.0%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Areas to Watch

TEVA4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

P/E RatioValuation
58.4x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-0.8%2/10

Revenue declined 0.8%

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Debt/EquityHealth
2.861/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : TEVA

The strongest argument for TEVA centers on EPS Growth, PEG Ratio. PEG of 0.96 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 : TEVA

The primary concerns for TEVA are Profit Margin, Operating Margin, P/E Ratio. A P/E of 58.4x leaves little room for execution misses. Debt-to-equity of 2.05 is elevated, increasing financial risk.

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

TEVA carries more volatility with a beta of 0.86 — 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.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ZTS scores higher overall (66/100 vs 49/100), backed by strong 28.0% margins. 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.

Teva Pharma Industries Ltd ADR

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic drugs, specialty drugs, and biopharmaceuticals in North America, Europe, and internationally. The company is headquartered in Petach Tikva, Israel.

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 →

Want to dig deeper into these stocks?