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 $33.9B against $24.3B — 1.4× the size. Zoetis Inc. trades at the lower P/E: 13.4× against 19.7×. United Therapeutics Corporation grew revenue faster over the last twelve months: 1.89% against 1.58%. United Therapeutics Corporation has the higher net margin (38.6% vs 27.7%) and the higher return on invested capital (30.1% 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 19.75 13.44 20.55
P/S 7.57 3.58 2.08
P/B 3.77 10.84 1.79
Price to free cash flow 27.99 14.67 16.29
EV/EBITDA 14.74 10.66 12.22
EV/Sales 6.55 4.50 2.87
Earnings yield 5.06% 7.44% (15.94%)
Free cash flow yield 3.57% 6.82% 0.00%

Profitability

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Gross margin 86.34% 71.67% 53.51%
Operating margin 41.45% 37.13% 0.00%
Net margin 38.61% 27.69% (2.45%)
Free cash flow margin 27.21% 24.43% 0.00%
Return on equity 19.13% 64.91% (0.80%)
Return on assets 17.11% 17.84% (1.67%)
Return on invested capital 30.13% 19.60% 0.00%

Growth

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 1.89% 1.58% 5.22%
EPS growth (last fiscal year) 13.07% 10.05% 42.91%
Revenue growth, 5-year CAGR 16.50% 7.24% 7.24%
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 0.04
Current ratio 4.66 3.08 2.41
Net debt to EBITDA (1.85) 1.65 1.01

Dividend

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

Size

Metric UTHR ZTS Drug Manufacturers Specialty & Generic median
Market cap 24.26b 33.93b 315.39m

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