Viatris Inc. (VTRS) vs Zoetis Inc. (ZTS)

Viatris Inc. and Zoetis Inc. are both Drug Manufacturers Specialty & Generic companies. Zoetis Inc. is the larger, with a market value of $32.4B against $20.9B — 1.5× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Zoetis Inc. trades at 13.0×. Viatris Inc. grew revenue faster over the last twelve months: 4.40% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs −2.79%) and the higher return on invested capital (19.6% vs −0.20%). Both pay a dividend; Zoetis Inc. yields more (2.64% vs 2.57%). Across the 22 metrics below, Zoetis Inc. leads on 15 and Viatris Inc. on 7.

Valuation

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
P/E n/m 13.03 19.25
P/S 1.47 3.47 2.11
P/B 1.52 10.51 1.78
Price to free cash flow 11.48 14.21 16.14
EV/EBITDA 12.58 10.40 12.58
EV/Sales 2.32 4.39 2.73
Earnings yield (1.93%) 7.68% (4.38%)
Free cash flow yield 8.71% 7.04% 0.00%

Profitability

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Gross margin 34.83% 71.67% 53.94%
Operating margin (0.59%) 37.13% 0.00%
Net margin (2.79%) 27.69% 0.00%
Free cash flow margin 12.83% 24.43% 0.00%
Return on equity (2.75%) 64.91% (0.40%)
Return on assets (1.12%) 17.84% (3.32%)
Return on invested capital (0.20%) 19.60% 0.00%

Growth

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 4.40% 1.58% 10.01%
EPS growth (last fiscal year) (466.04%) 10.05% 49.06%
Revenue growth, 5-year CAGR 3.66% 7.24% 6.74%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.94 2.87 0.05
Current ratio 1.58 3.08 2.31
Net debt to EBITDA 4.92 1.65 0.97

Dividend

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 2.57% 2.64% 1.57%
Payout ratio — 0.34 0.27

Size

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Market cap 20.93b 32.40b 276.90m

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