Takeda Pharmaceutical Co. (TAK) vs Zoetis Inc. (ZTS)

Takeda Pharmaceutical Co. and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Takeda Pharmaceutical Co. is the larger, with a market value of $67.7B against $33.9B — 2.0× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 32.0×. Zoetis Inc. grew revenue faster over the last twelve months: 1.58% against 0.66%. Zoetis Inc. has the higher net margin (27.7% vs 7.12%) and the higher return on invested capital (19.6% vs 0.00%). Both pay a dividend; Zoetis Inc. yields more (2.59% vs 1.45%). Across the 23 metrics below, Zoetis Inc. leads on 17 and Takeda Pharmaceutical Co. on 6.

Valuation

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
P/E 31.97 13.44 20.55
P/S 2.24 3.58 2.08
P/B 1.44 10.84 1.79
Price to free cash flow 8.42 14.67 16.29
EV/EBITDA 11.17 10.66 12.22
EV/Sales 3.10 4.50 2.87
Earnings yield 3.13% 7.44% (15.94%)
Free cash flow yield 11.88% 6.82% 0.00%

Profitability

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 71.67% 53.51%
Operating margin 11.61% 37.13% 0.00%
Net margin 7.12% 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 TAK ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 1.58% 5.22%
EPS growth (last fiscal year) (244.86%) 10.05% 42.91%
Revenue growth, 5-year CAGR (0.21%) 7.24% 7.24%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.62 2.87 0.04
Current ratio 1.15 3.08 2.41
Net debt to EBITDA 5.84 1.65 1.01

Dividend

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 1.45% 2.59% 1.45%
Payout ratio 0.46 0.35 0.27

Size

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Market cap 67.70b 33.93b 315.39m

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