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 $29.2B against $14.1B — 2.1× the size. Zoetis Inc. trades at the lower P/E: 11.7× against 19.6×. Neurocrine Biosciences, Inc. grew revenue faster over the last twelve months: 34.4% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs 20.9%) and the higher return on invested capital (19.6% vs 15.0%). Across the 22 metrics below, Zoetis Inc. leads on 14 and Neurocrine Biosciences, Inc. on 8.

Valuation

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
P/E 19.63 11.69 20.14
P/S 4.14 3.12 2.25
P/B 3.78 9.43 1.90
Price to free cash flow 16.06 12.75 16.54
EV/EBITDA 16.65 9.55 12.29
EV/Sales 4.11 4.03 2.56
Earnings yield 5.09% 8.56% (2.99%)
Free cash flow yield 6.23% 7.84% 0.00%

Profitability

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Gross margin 97.94% 71.67% 53.94%
Operating margin 23.56% 37.13% 0.00%
Net margin 20.91% 27.69% 0.00%
Free cash flow margin 25.80% 24.43% 0.00%
Return on equity 22.09% 64.91% (0.40%)
Return on assets 15.26% 17.84% (3.32%)
Return on invested capital 15.04% 19.60% 0.00%

Growth

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 34.42% 1.58% 10.01%
EPS growth (last fiscal year) 41.95% 10.05% —
Revenue growth, 5-year CAGR 22.29% 7.24% 6.74%
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 0.05
Current ratio 1.87 3.08 2.31
Net debt to EBITDA (2.33) 1.65 0.85

Dividend

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

Size

Metric NBIX ZTS Drug Manufacturers Specialty & Generic median
Market cap 14.12b 29.19b 337.35m

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