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 $48.7B against $33.9B — 1.4× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 92.6×. Teva Pharmaceutical Industries Ltd. grew revenue faster over the last twelve months: 2.71% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs 2.94%) and the higher return on invested capital (19.6% vs 4.09%). 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 92.59 13.44 20.55
P/S 2.82 3.58 2.08
P/B 6.09 10.84 1.79
Price to free cash flow 36.64 14.67 16.29
EV/EBITDA 26.25 10.66 12.22
EV/Sales 3.56 4.50 2.87
Earnings yield 1.08% 7.44% (15.94%)
Free cash flow yield 2.73% 6.82% 0.00%

Profitability

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Gross margin 53.51% 71.67% 53.51%
Operating margin 7.84% 37.13% 0.00%
Net margin 2.94% 27.69% (2.45%)
Free cash flow margin 7.71% 24.43% 0.00%
Return on equity 6.65% 64.91% (0.80%)
Return on assets 1.27% 17.84% (1.67%)
Return on invested capital 4.09% 19.60% 0.00%

Growth

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 2.71% 1.58% 5.22%
EPS growth (last fiscal year) 183.45% 10.05% 42.91%
Revenue growth, 5-year CAGR 0.71% 7.24% 7.24%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 2.09 2.87 0.04
Current ratio 0.95 3.08 2.41
Net debt to EBITDA 4.19 1.65 1.01

Dividend

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

Size

Metric TEVA ZTS Drug Manufacturers Specialty & Generic median
Market cap 48.69b 33.93b 315.39m

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