Comparing Aratana Therapeutics (NASDAQ:PETX) & Zoetis (ZTS)
Aratana Therapeutics (NASDAQ: PETX) and Zoetis (NYSE:ZTS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitabiliy, dividends and earnings.
Risk and Volatility
Aratana Therapeutics has a beta of 3.43, suggesting that its stock price is 243% more volatile than the S&P 500. Comparatively, Zoetis has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Institutional and Insider Ownership
67.9% of Aratana Therapeutics shares are held by institutional investors. Comparatively, 95.1% of Zoetis shares are held by institutional investors. 5.2% of Aratana Therapeutics shares are held by insiders. Comparatively, 0.3% of Zoetis shares are held 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.
Earnings & Valuation
This table compares Aratana Therapeutics and Zoetis’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aratana Therapeutics||$42.17 million||7.04||-$16.31 million||($0.75)||-9.41|
|Zoetis||$4.96 billion||6.25||$1.71 billion||$1.72||36.72|
Zoetis has higher revenue and earnings than Aratana Therapeutics. Aratana Therapeutics is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Aratana Therapeutics and Zoetis, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aratana Therapeutics presently has a consensus target price of $10.40, indicating a potential upside of 47.31%. Zoetis has a consensus target price of $63.06, indicating a potential downside of 0.17%. Given Aratana Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Aratana Therapeutics is more favorable than Zoetis.
This table compares Aratana Therapeutics and Zoetis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Zoetis pays an annual dividend of $0.42 per share and has a dividend yield of 0.7%. Aratana Therapeutics does not pay a dividend. Zoetis pays out 24.4% of its earnings in the form of a dividend. Zoetis has raised its dividend for 3 consecutive years.
Zoetis beats Aratana Therapeutics on 10 of the 16 factors compared between the two stocks.
About Aratana Therapeutics
Aratana Therapeutics, Inc. is a pet therapeutics company focused on licensing, developing and commercializing of biopharmaceutical products for companion animals. The Company’s portfolio includes therapeutic candidates in development consisting of small molecule pharmaceuticals and large molecule biologics that target medical conditions in pets. Its lead product candidates in development include small molecules directed at treating osteoarthritis pain and inflammation (AT-001 for dogs, also known as grapiprant for dogs or GALLIPRANT), appetite stimulation (AT-002 for dogs, also known as capromorelin for dogs or ENTYCE) and post-operative pain (AT-003 for dogs, also known as bupivacaine liposome injectable suspension for dogs or NOCITA). AT-001 is a selective antagonist of the prostaglandin E2 (PGE 2) EP4 receptor (EP4 prostaglandin receptor antagonist or EP4 PRA). AT-002 is a potent and selective ghrelin agonist. Its product candidates also include AT-014, AT-016 and AT-018 for dogs.
Zoetis Inc. is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The Company has a business, commercializing products across eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock) and dogs, cats and horses (collectively, companion animals), and within five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals. The Company’s segments include the United States and International. Within each of these operating segments, it offers a product portfolio for both livestock and companion animal customers. Its livestock products include Ceftiofur injectable line, Draxxin, Spectramast, Bovi-Shield line, Rispoval line, Suvaxyn/Fostera, Embrex devices and Lutalyse. Its companion animal products include Clavamox/Synulox, Convenia, ProHeart, Revolution/Stronghold, Apoquel, Cerenia and Rimadyl.
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