Haleon PLC Sponsored ADR (HLN) vs Zoetis Inc. (ZTS)

Haleon PLC Sponsored ADR and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Haleon PLC Sponsored ADR is the larger, with a market value of $40.3B against $29.2B — 1.4× the size. Zoetis Inc. trades at the lower P/E: 11.7× against 20.6×. Zoetis Inc. has the higher net margin (27.7% vs 13.8%) and the higher return on invested capital (19.6% vs 0.00%). Both pay a dividend; Haleon PLC Sponsored ADR yields more (1.70% vs 0.76%). Across the 22 metrics below, Zoetis Inc. leads on 14 and Haleon PLC Sponsored ADR on 8.

Valuation

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
P/E 20.64 11.69 20.14
P/S 2.35 3.12 2.25
P/B 1.93 9.43 1.90
Price to free cash flow 9.36 12.75 16.54
EV/EBITDA 12.36 9.55 12.29
EV/Sales 2.90 4.03 2.56
Earnings yield 4.84% 8.56% (2.99%)
Free cash flow yield 10.68% 7.84% 0.00%

Profitability

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Gross margin 62.22% 71.67% 53.94%
Operating margin 17.93% 37.13% 0.00%
Net margin 13.79% 27.69% 0.00%
Free cash flow margin 0.00% 24.43% 0.00%
Return on equity 0.00% 64.91% (0.40%)
Return on assets 0.00% 17.84% (3.32%)
Return on invested capital 0.00% 19.60% 0.00%

Growth

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) — 1.58% 10.01%
EPS growth (last fiscal year) 22.50% 10.05% —
Revenue growth, 5-year CAGR 1.43% 7.24% 6.74%
Net income growth, 5-year CAGR 6.98% 10.29% 0.00%

Health

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.50 2.87 0.05
Current ratio 0.69 3.08 2.31
Net debt to EBITDA 2.63 1.65 0.85

Dividend

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 1.70% 0.76% 1.70%
Payout ratio — 0.29 0.00

Size

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Market cap 40.28b 29.19b 337.35m

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