Reviewing Zoetis (ZTS) & Its Rivals

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

Dividends

Zoetis pays an annual dividend of $2.12 per share and has a dividend yield of 2.6%. Zoetis pays out 36.1% 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.

Risk and Volatility

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 -3.79, meaning that their average stock price is 479% less volatile than the S&P 500.

Valuation and Earnings

This table compares Zoetis and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zoetis	$9.47 billion	$2.67 billion	14.03
Zoetis Competitors	$3.53 billion	$3.17 billion	552.64

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%	85.90%	18.39%
Zoetis Competitors	-2,380.61%	-219.90%	-15.56%

Analyst Ratings

This is a summary of recent recommendations for Zoetis and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	1	12	8	0	2.33
Zoetis Competitors	7806	13897	25803	1039	2.41

Zoetis currently has a consensus target price of $101.25, indicating a potential upside of 22.75%. As a group, “Pharmaceuticals” companies have a potential upside of 25.33%. Given Zoetis’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Zoetis has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 32.6% 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 competitors beat Zoetis on 8 of the 15 factors compared.

About Zoetis

Zoetis is an animal health company that discovers, develops, manufactures and markets medicines, vaccines, diagnostic products and other services for animals. Its products support both companion animals, such as dogs and cats, and livestock, including cattle, pigs, poultry, sheep and fish. The company’s offerings include treatments for pain, infections and skin conditions, as well as vaccines, parasiticides, diagnostic tools and genetic testing services. Zoetis serves veterinarians, livestock producers and other animal health professionals around the world.