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 $43.7B against $32.4B — 1.3× the size. Zoetis Inc. trades at the lower P/E: 13.0× against 22.6×. 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; Zoetis Inc. yields more (2.64% vs 1.95%). 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 22.58 13.03 19.25
P/S 2.57 3.47 2.11
P/B 2.11 10.51 1.78
Price to free cash flow 10.24 14.21 16.14
EV/EBITDA 13.30 10.40 12.58
EV/Sales 3.12 4.39 2.73
Earnings yield 4.43% 7.68% (4.38%)
Free cash flow yield 9.77% 7.04% 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% 49.06%
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 0.97

Dividend

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 1.95% 2.64% 1.57%
Payout ratio — 0.34 0.27

Size

Metric HLN ZTS Drug Manufacturers Specialty & Generic median
Market cap 43.71b 32.40b 276.90m

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