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 $40.2B against $33.9B — 1.2× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 20.5×. Zoetis Inc. has the higher net margin (27.7% vs 11.2%) and the higher return on invested capital (19.6% vs 0.00%). Both pay a dividend; Zoetis Inc. yields more (2.59% vs 2.16%). Across the 22 metrics below, Zoetis Inc. leads on 15 and Haleon PLC Sponsored ADR on 7.

Valuation

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
P/E 20.48 13.44 20.55
P/S 2.32 3.58 2.08
P/B 1.90 10.84 1.79
Price to free cash flow 9.23 14.67 16.29
EV/EBITDA 12.22 10.66 12.22
EV/Sales 2.87 4.50 2.87
Earnings yield 4.88% 7.44% (15.94%)
Free cash flow yield 10.84% 6.82% 0.00%

Profitability

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Gross margin 62.22% 71.67% 53.51%
Operating margin 17.93% 37.13% 0.00%
Net margin 11.18% 27.69% (2.45%)
Free cash flow margin 0.00% 24.43% 0.00%
Return on equity 0.00% 64.91% (0.80%)
Return on assets 0.00% 17.84% (1.67%)
Return on invested capital 0.00% 19.60% 0.00%

Growth

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) — 1.58% 5.22%
EPS growth (last fiscal year) 22.50% 10.05% 42.91%
Revenue growth, 5-year CAGR 1.43% 7.24% 7.24%
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 0.04
Current ratio 0.69 3.08 2.41
Net debt to EBITDA 2.63 1.65 1.01

Dividend

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 2.16% 2.59% 1.45%
Payout ratio — 0.35 0.27

Size

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Market cap 40.24b 33.93b 315.39m

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