Zoetis (NYSE:ZTS) versus Aratana Therapeutics (PETX) Critical Survey
Zoetis (NYSE: ZTS) and Aratana Therapeutics (NASDAQ:PETX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitabiliy, risk and valuation.
This table compares Zoetis and Aratana Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Zoetis has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Aratana Therapeutics has a beta of 3.43, suggesting that its stock price is 243% more volatile than the S&P 500.
Insider & Institutional Ownership
95.2% of Zoetis shares are owned by institutional investors. Comparatively, 68.1% of Aratana Therapeutics shares are owned by institutional investors. 0.3% of Zoetis shares are owned by insiders. Comparatively, 5.2% of Aratana Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Zoetis and Aratana Therapeutics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zoetis||$4.96 billion||6.14||$1.71 billion||$1.72||36.05|
|Aratana Therapeutics||$42.17 million||6.34||-$16.31 million||($0.75)||-9.39|
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 summary of recent ratings for Zoetis and Aratana Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zoetis currently has a consensus price target of $63.06, indicating a potential upside of 1.69%. Aratana Therapeutics has a consensus price target of $10.40, indicating a potential upside of 47.73%. Given Aratana Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Aratana Therapeutics is more favorable than Zoetis.
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 increased its dividend for 3 consecutive years.
Zoetis beats Aratana Therapeutics on 10 of the 16 factors compared between the two stocks.
Zoetis Company Profile
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.
Aratana Therapeutics Company Profile
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.
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