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 $61.9B against $32.4B — 1.9× the size. Zoetis Inc. trades at the lower P/E: 13.0× against 29.6×. 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; Zoetis Inc. yields more (2.64% vs 1.57%). Across the 23 metrics below, Zoetis Inc. leads on 16 and Takeda Pharmaceutical Co. on 7.

Valuation

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
P/E 29.60 13.03 19.25
P/S 2.07 3.47 2.11
P/B 1.31 10.51 1.78
Price to free cash flow 8.38 14.21 16.14
EV/EBITDA 10.79 10.40 12.58
EV/Sales 3.00 4.39 2.73
Earnings yield 3.38% 7.68% (4.38%)
Free cash flow yield 11.94% 7.04% 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% 49.06%
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 0.97

Dividend

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 1.57% 2.64% 1.57%
Payout ratio 0.46 0.34 0.27

Size

Metric TAK ZTS Drug Manufacturers Specialty & Generic median
Market cap 61.90b 32.40b 276.90m

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