Head to Head Contrast: Zoetis (ZTS) and Its Rivals

Zoetis (NYSE: ZTS) is one of 485 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it weigh in compared to its peers? We will compare Zoetis to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.

Earnings & Valuation

This table compares Zoetis and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zoetis $5.31 billion $864.00 million 35.19
Zoetis Competitors $2.02 billion $136.59 million -3.52

Zoetis has higher revenue and earnings than its peers. Zoetis is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Zoetis has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Zoetis’ peers have a beta of 1.09, suggesting that their average share price is 9% more volatile than the S&P 500.

Profitability

This table compares Zoetis and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zoetis 17.97% 68.51% 15.00%
Zoetis Competitors -3,019.29% -153.18% -27.69%

Dividends

Zoetis pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Zoetis pays out 20.8% of its earnings in the form of a dividend. As a group, “Pharmaceutical preparations” companies pay a dividend yield of 2.3% and pay out 33.5% of their earnings in the form of a dividend. Zoetis has raised its dividend for 4 consecutive years.

Insider and Institutional Ownership

92.9% of Zoetis shares are held by institutional investors. Comparatively, 46.7% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 0.4% of Zoetis shares are held by company insiders. Comparatively, 15.6% of shares of all “Pharmaceutical preparations” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Zoetis and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zoetis 0 7 11 0 2.61
Zoetis Competitors 2936 8959 21824 609 2.59

Zoetis presently has a consensus price target of $82.06, indicating a potential downside of 2.83%. As a group, “Pharmaceutical preparations” companies have a potential upside of 42.44%. Given Zoetis’ peers higher probable upside, analysts plainly believe Zoetis has less favorable growth aspects than its peers.

Summary

Zoetis beats its peers on 9 of the 15 factors compared.

Zoetis Company Profile

Zoetis Inc. discovers, develops, manufactures, and markets veterinary vaccines and medicines in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses. The company offers anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; and parasiticides that prevent or eliminate external and internal parasites that include fleas, ticks, and worms. It also provides medicated feed additives that offer medicines to livestock; and other pharmaceutical products, which comprise allergy and dermatology, pain and sedation, antiemetic, reproductive, and oncology products. In addition, the company offers other product categories, including nutritionals and agribusiness services, as well as products and services in complementary areas, such as biodevices, diagnostics, and genetics. It markets its products to veterinarians, livestock producers, and people who raise and care for farm and companion animals through its sales representatives, and technical and veterinary operations specialists. The company was founded in 1952 and is headquartered in Parsippany, New Jersey.

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