COMPARE · Reviewed July 29, 2026
GRFS vs ZTS
Verdict: Side-by-side breakdown using the Bull Rankings model. GRFS scored 71.0, ZTS scored 78.0 — ZTS leads.
Compare another set
GRFS
Grifols, S.A.
71
$8.15 · $5.5B
fundamentals as of
Score gap
7.0
ZTS leads
ZTS
Zoetis Inc.
78
$77.93
fundamentals as of
Fundamentals, head-to-head
GRFS
ZTS
$559mC+
FCF
$2.2bB
+9.4%B
Rev
+2.6%C
1.23C
D/E
2.86D
10.9xA
P/E
12.8xA
0.19A
PEG
1.84C+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
GRFS
ZTS
52% below
Price vs fair valuelower is cheaper
—
~-3%/yr
Growth the price implies10-yr FCF · lower = less priced in
—
+58%
1-yr DCF upside
—
+107%
5-yr DCF upside
—
+206%
10-yr DCF upside
—
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
GRFS
Why this score
- Raising its dividend
- Foreign reporter (EUR)
ZTS
No notable signals flagged.
The companies
GRFSGrifols, S.A.
Why now
Drug Manufacturers - General · market cap $5.5b. Down 27% from 52-week high of $11.14 — deep drawdown territory. PEG 0.19 — paying under fair value for the growth rate.
Moat
FCF converts 118% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
Net margin 3.0% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 2% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
ZTSZoetis Inc.
Why now
Drug Manufacturers - Specialty & Generic · market cap n/a. Down 51% from 52-week high of $160.48 — deep drawdown territory. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $111.94 (implying +44% upside).
Moat
Net margin 28% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 82% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
D/E 2.86 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 51% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.