Zoetis (NYSE:ZTS – Get Free Report) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Zoetis to similar businesses based on the strength of its analyst recommendations, risk, valuation, profitability, institutional ownership, dividends and earnings.
Volatility and Risk
Zoetis has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Zoetis’ competitors have a beta of -3.71, meaning that their average stock price is 471% less volatile than the S&P 500.
Earnings & Valuation
This table compares Zoetis and its competitors 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 competitors. Zoetis is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Zoetis and its competitors’ 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% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Zoetis and its competitors, as reported by MarketBeat.com.
| 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, indicating a potential upside of 27.36%. As a group, “Pharmaceuticals” companies have a potential upside of 25.64%. Given Zoetis’ higher probable upside, equities analysts plainly believe Zoetis is more favorable than its competitors.
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 increased its dividend for 14 consecutive years.
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 company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Zoetis beats its competitors on 8 of the 15 factors compared.
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.
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