United Therapeutics Corporation (UTHR) vs Zoetis Inc. (ZTS)

United Therapeutics Corporation and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Zoetis Inc. is the larger, with a market value of $29.2B against $20.3B — 1.4× the size. Zoetis Inc. trades at the lower P/E: 11.7× against 15.7×. United Therapeutics Corporation grew revenue faster over the last twelve months: 2.49% against 1.58%. United Therapeutics Corporation has the higher net margin (41.6% vs 27.7%) and the higher return on invested capital (23.4% vs 19.6%). Across the 22 metrics below, United Therapeutics Corporation leads on 13 and Zoetis Inc. on 9.

Valuation

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
P/E 15.70 11.69 20.14
P/S 6.42 3.12 2.25
P/B 3.16 9.43 1.90
Price to free cash flow 18.62 12.75 16.54
EV/EBITDA 11.98 9.55 12.29
EV/Sales 5.67 4.03 2.56
Earnings yield 6.37% 8.56% (2.99%)
Free cash flow yield 5.37% 7.84% 0.00%

Profitability

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Gross margin 86.14% 71.67% 53.94%
Operating margin 44.44% 37.13% 0.00%
Net margin 41.56% 27.69% 0.00%
Free cash flow margin 34.65% 24.43% 0.00%
Return on equity 19.32% 64.91% (0.40%)
Return on assets 17.33% 17.84% (3.32%)
Return on invested capital 23.44% 19.60% 0.00%

Growth

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 2.49% 1.58% 10.01%
EPS growth (last fiscal year) 13.07% 10.05% —
Revenue growth, 5-year CAGR 16.50% 7.24% 6.74%
Net income growth, 5-year CAGR 20.99% 10.29% 0.00%

Health

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.00 2.87 0.05
Current ratio 5.73 3.08 2.31
Net debt to EBITDA (1.85) 1.65 0.85

Dividend

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Dividend yield — 0.76% 1.70%
Payout ratio 0.00 0.29 0.00

Size

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Market cap 20.25b 29.19b 337.35m

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