Head to Head Review: Johnson & Johnson (NYSE:JNJ) & Zoetis (NYSE:ZTS)

Zoetis (NYSE:ZTS – Get Free Report) and Johnson & Johnson (NYSE:JNJ – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zoetis and Johnson & Johnson, as reported by MarketBeat.

Zoetis currently has a consensus price target of $98.40, indicating a potential upside of 25.74%. Johnson & Johnson has a consensus price target of $275.92, indicating a potential upside of 2.64%. Given Zoetis’ higher probable upside, analysts clearly believe Zoetis is more favorable than Johnson & Johnson.

Institutional and Insider Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Comparatively, 0.2% of Johnson & Johnson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Zoetis and Johnson & Johnson”s revenue, earnings per share (EPS) and valuation.

Zoetis is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zoetis and Johnson & Johnson’s net margins, return on equity and return on assets.

Summary

Johnson & Johnson beats Zoetis on 5 of the 8 factors compared between the two stocks.

About Zoetis

(Get Free Report)

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 Johnson & Johnson

(Get Free Report)

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

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