WallStSmart

Viatris Inc (VTRS)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Viatris Inc generates 54% more annual revenue ($14.56B vs $9.47B). ZTS leads profitability with a 28.2% profit margin vs -2.0%. VTRS appears more attractively valued with a PEG of 0.15. ZTS earns a higher WallStSmart Score of 64/100 (C+).

VTRS

Hold

48

out of 100

Grade: D+

Growth: 3.3Profit: 2.5Value: 8.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.80

ZTS

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 10.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

VTRSUndervalued (+33.6%)

Margin of Safety

+33.6%

Fair Value

$24.30

Current Price

$17.17

$7.13 discount

UndervaluedFair: $24.30Overvalued
ZTSUndervalued (+19.4%)

Margin of Safety

+19.4%

Fair Value

$159.74

Current Price

$82.83

$76.91 discount

UndervaluedFair: $159.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VTRS2 strengths · Avg: 10.0/10
PEG RatioValuation
0.1510/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

ZTS5 strengths · Avg: 9.4/10
Return on EquityProfitability
66.0%10/10

Every $100 of equity generates 66 in profit

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Areas to Watch

VTRS4 concerns · Avg: 1.8/10
Return on EquityProfitability
-2.0%2/10

ROE of -2.0% — below average capital efficiency

EPS GrowthGrowth
-70.6%2/10

Earnings declined 70.6%

Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

Profit MarginProfitability
-2.0%1/10

Currently unprofitable

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

Debt/EquityHealth
2.851/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : VTRS

The strongest argument for VTRS centers on PEG Ratio, Price/Book. PEG of 0.15 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 28.2% and operating margin at 34.7%.

Bear Case : VTRS

The primary concerns for VTRS are Return on Equity, EPS Growth, Altman Z-Score.

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

VTRS profiles as a turnaround stock while ZTS is a value play — different risk/reward profiles.

VTRS carries more volatility with a beta of 0.87 — expect wider price swings.

VTRS is growing revenue faster at 8.1% — sustainability is the question.

ZTS generates stronger free cash flow (732M), providing more financial flexibility.

Bottom Line

ZTS scores higher overall (64/100 vs 48/100), backed by strong 28.2% margins. VTRS offers better value entry with a 33.6% 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.

Viatris Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Viatris Inc. is an American global healthcare company headquartered in Canonsburg, Pennsylvania.

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 →

Want to dig deeper into these stocks?