Neurocrine Biosciences, Inc. (NBIX) vs Zoetis Inc. (ZTS)

Neurocrine Biosciences, Inc. and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Zoetis Inc. is the larger, with a market value of $33.9B against $16.2B — 2.1× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 23.0×. Neurocrine Biosciences, Inc. grew revenue faster over the last twelve months: 38.0% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs 19.0%) and the higher return on invested capital (19.6% vs 17.7%). Across the 22 metrics below, Zoetis Inc. leads on 13 and Neurocrine Biosciences, Inc. on 9.

Valuation

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
P/E 23.01 13.44 20.55
P/S 4.40 3.58 2.08
P/B 4.20 10.84 1.79
Price to free cash flow 15.68 14.67 16.29
EV/EBITDA 16.51 10.66 12.22
EV/Sales 4.35 4.50 2.87
Earnings yield 4.35% 7.44% (15.94%)
Free cash flow yield 6.38% 6.82% 0.00%

Profitability

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Gross margin 97.75% 71.67% 53.51%
Operating margin 23.96% 37.13% 0.00%
Net margin 18.98% 27.69% (2.45%)
Free cash flow margin 28.09% 24.43% 0.00%
Return on equity 20.41% 64.91% (0.80%)
Return on assets 14.20% 17.84% (1.67%)
Return on invested capital 17.65% 19.60% 0.00%

Growth

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 37.98% 1.58% 5.22%
EPS growth (last fiscal year) 41.95% 10.05% 42.91%
Revenue growth, 5-year CAGR 22.29% 7.24% 7.24%
Net income growth, 5-year CAGR 3.28% 10.29% 0.00%

Health

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.00 2.87 0.04
Current ratio 2.04 3.08 2.41
Net debt to EBITDA (2.33) 1.65 1.01

Dividend

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

Size

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Market cap 16.17b 33.93b 315.39m

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