Zoetis (ZTS) & Its Rivals Financial Survey

Zoetis (NYSE:ZTS) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare Zoetis to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Dividends

Zoetis pays an annual dividend of $2.12 per share and has a dividend yield of 2.7%. Zoetis pays out 34.9% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.3% and pay out 48.0% of their earnings in the form of a dividend. Zoetis has raised its dividend for 14 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Zoetis	$9.47 billion	$2.67 billion	13.10
Zoetis Competitors	$3.54 billion	$3.18 billion	553.85

Zoetis has higher revenue, but lower earnings than its rivals. Zoetis is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zoetis	26.15%	86.34%	18.35%
Zoetis Competitors	-2,380.38%	-217.94%	-15.54%

Volatility & Risk

Zoetis has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Zoetis’ rivals have a beta of -3.71, meaning that their average share price is 471% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Zoetis and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	1	12	8	0	2.33
Zoetis Competitors	7798	13888	25778	1037	2.41

Zoetis currently has a consensus price target of $101.25, suggesting a potential upside of 27.36%. As a group, “Pharmaceuticals” companies have a potential upside of 25.64%. Given Zoetis’ higher probable upside, research analysts plainly believe Zoetis is more favorable than its rivals.

Insider and Institutional Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Zoetis beats its rivals on 8 of the 15 factors compared.

Zoetis Company Profile

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.