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 $59.2B against $29.2B — 2.0× the size. Zoetis Inc. trades at the lower P/E: 11.7× against 28.4×. 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 2.88%). Both pay a dividend; Takeda Pharmaceutical Co. yields more (4.52% vs 0.76%). Across the 23 metrics below, Zoetis Inc. leads on 15 and Takeda Pharmaceutical Co. on 8.

Valuation

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
P/E 28.36 11.69 20.14
P/S 1.99 3.12 2.25
P/B 1.25 9.43 1.90
Price to free cash flow 8.03 12.75 16.54
EV/EBITDA 10.48 9.55 12.29
EV/Sales 2.91 4.03 2.56
Earnings yield 3.53% 8.56% (2.99%)
Free cash flow yield 12.46% 7.84% 0.00%

Profitability

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Gross margin 65.85% 71.67% 53.94%
Operating margin 11.61% 37.13% 0.00%
Net margin 7.12% 27.69% 0.00%
Free cash flow margin 24.74% 24.43% 0.00%
Return on equity 4.42% 64.91% (0.40%)
Return on assets 2.15% 17.84% (3.32%)
Return on invested capital 2.88% 19.60% 0.00%

Growth

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 0.66% 1.58% 10.01%
EPS growth (last fiscal year) (244.86%) 10.05% —
Revenue growth, 5-year CAGR (0.21%) 7.24% 6.74%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.65 2.87 0.05
Current ratio 1.14 3.08 2.31
Net debt to EBITDA 5.84 1.65 0.85

Dividend

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 4.52% 0.76% 1.70%
Payout ratio 0.50 0.29 0.00

Size

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Market cap 59.16b 29.19b 337.35m

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