Teva Pharmaceutical Industries Ltd. (TEVA) vs Zoetis Inc. (ZTS)

Teva Pharmaceutical Industries Ltd. and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Teva Pharmaceutical Industries Ltd. is the larger, with a market value of $47.9B against $32.4B — 1.5× the size. Zoetis Inc. trades at the lower P/E: 13.0× against 65.9×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 4.13% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs 4.08%) and the higher return on invested capital (19.6% vs 4.58%). Across the 22 metrics below, Zoetis Inc. leads on 16 and Teva Pharmaceutical Industries Ltd. on 6.

Valuation

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
P/E 65.90 13.03 19.25
P/S 2.79 3.47 2.11
P/B 6.24 10.51 1.78
Price to free cash flow 34.53 14.21 16.14
EV/EBITDA 24.46 10.40 12.58
EV/Sales 3.54 4.39 2.73
Earnings yield 1.52% 7.68% (4.38%)
Free cash flow yield 2.90% 7.04% 0.00%

Profitability

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Gross margin 52.46% 71.67% 53.94%
Operating margin 8.77% 37.13% 0.00%
Net margin 4.08% 27.69% 0.00%
Free cash flow margin 8.09% 24.43% 0.00%
Return on equity 9.69% 64.91% (0.40%)
Return on assets 1.77% 17.84% (3.32%)
Return on invested capital 4.58% 19.60% 0.00%

Growth

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 4.13% 1.58% 10.01%
EPS growth (last fiscal year) 183.45% 10.05% 49.06%
Revenue growth, 5-year CAGR 0.71% 7.24% 6.74%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 2.14 2.87 0.05
Current ratio 0.88 3.08 2.31
Net debt to EBITDA 4.19 1.65 0.97

Dividend

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Dividend yield — 3.31% 1.57%
Payout ratio — 0.43 0.27

Size

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Market cap 47.91b 32.40b 276.90m

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