Zoetis (NYSE:ZTS – Get Free Report) and Vireo Growth (OTCMKTS:VREOD – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Volatility and Risk
Zoetis has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Vireo Growth has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.
Valuation and Earnings
This table compares Zoetis and Vireo Growth”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zoetis | $9.53 billion | 3.02 | $2.67 billion | $6.07 | 11.47 |
| Vireo Growth | $268.77 million | 1.68 | -$68.11 million | ($3.30) | -3.02 |
Zoetis has higher revenue and earnings than Vireo Growth. Vireo Growth is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zoetis and Vireo Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zoetis | 27.49% | 74.89% | 18.59% |
| Vireo Growth | -23.37% | -19.76% | -7.15% |
Insider & Institutional Ownership
92.8% of Zoetis shares are held by institutional investors. 0.2% of Zoetis shares are held by company insiders. Comparatively, 3.8% of Vireo Growth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations for Zoetis and Vireo Growth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zoetis | 2 | 9 | 8 | 0 | 2.32 |
| Vireo Growth | 1 | 0 | 0 | 0 | 1.00 |
Zoetis currently has a consensus price target of $101.08, suggesting a potential upside of 45.18%. Given Zoetis’ stronger consensus rating and higher probable upside, analysts clearly believe Zoetis is more favorable than Vireo Growth.
Summary
Zoetis beats Vireo Growth on 12 of the 14 factors compared between the two stocks.
About Zoetis
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses. It also offers parasiticides, vaccines, dermatology, other pharmaceutical, anti-infectives, animal health diagnostics, and medicated feed additives. In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaboration Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was founded in 1952 and is headquartered in Parsippany, New Jersey.
About Vireo Growth
Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.
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