Analyzing Zoetis (NYSE:ZTS) & Evolus (NASDAQ:EOLS)

Evolus (NASDAQ:EOLS) and Zoetis (NYSE:ZTS) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Evolus and Zoetis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolus	$297.18 million	1.71	-$51.64 million	($0.52)	-14.79
Zoetis	$9.47 billion	3.01	$2.67 billion	$6.07	11.38

Zoetis has higher revenue and earnings than Evolus. Evolus is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Evolus has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Evolus and Zoetis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolus	1	1	4	0	2.50
Zoetis	2	9	8	0	2.32

Evolus presently has a consensus price target of $14.50, suggesting a potential upside of 88.56%. Zoetis has a consensus price target of $101.08, suggesting a potential upside of 46.33%. Given Evolus’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Evolus is more favorable than Zoetis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolus	-10.85%	N/A	-13.00%
Zoetis	27.49%	74.89%	18.59%

Institutional & Insider Ownership

90.7% of Evolus shares are owned by institutional investors. Comparatively, 92.8% of Zoetis shares are owned by institutional investors. 5.0% of Evolus shares are owned by company insiders. Comparatively, 0.2% of Zoetis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Zoetis beats Evolus on 10 of the 14 factors compared between the two stocks.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.

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.