Elanco Animal Health Incorporated (ELAN) vs Zoetis Inc. (ZTS)

Elanco Animal Health Incorporated and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Zoetis Inc. is the larger, with a market value of $33.9B against $11.8B — 2.9× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Zoetis Inc. trades at 13.4×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs −3.96%) and the higher return on invested capital (19.6% vs 0.51%). Across the 21 metrics below, Zoetis Inc. leads on 15 and Elanco Animal Health Incorporated on 6.

Valuation

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
P/E n/m 13.44 20.55
P/S 2.36 3.58 2.08
P/B 1.80 10.84 1.79
Price to free cash flow 33.22 14.67 16.29
EV/EBITDA 19.70 10.66 12.22
EV/Sales 3.04 4.50 2.87
Earnings yield (1.73%) 7.44% (15.94%)
Free cash flow yield 3.01% 6.82% 0.00%

Profitability

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 71.67% 53.51%
Operating margin 1.61% 37.13% 0.00%
Net margin (3.96%) 27.69% (2.45%)
Free cash flow margin 7.55% 24.43% 0.00%
Return on equity (2.98%) 64.91% (0.80%)
Return on assets (1.46%) 17.84% (1.67%)
Return on invested capital 0.51% 19.60% 0.00%

Growth

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 1.58% 5.22%
EPS growth (last fiscal year) (169.12%) 10.05% 42.91%
Revenue growth, 5-year CAGR 7.59% 7.24% 7.24%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 2.87 0.04
Current ratio 2.05 3.08 2.41
Net debt to EBITDA 5.00 1.65 1.01

Dividend

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
Dividend yield — 2.59% 1.45%
Payout ratio — 0.35 0.27

Size

Metric ELAN ZTS Drug Manufacturers Specialty & Generic median
Market cap 11.83b 33.93b 315.39m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack