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 $29.2B against $20.0B — 1.5× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Zoetis Inc. trades at 11.7×. 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; Viatris Inc. yields more (4.15% vs 0.76%). Across the 22 metrics below, Zoetis Inc. leads on 14 and Viatris Inc. on 8.

Valuation

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
P/E n/m 11.69 20.14
P/S 1.41 3.12 2.25
P/B 1.45 9.43 1.90
Price to free cash flow 10.97 12.75 16.54
EV/EBITDA 12.22 9.55 12.29
EV/Sales 2.25 4.03 2.56
Earnings yield (2.02%) 8.56% (2.99%)
Free cash flow yield 9.11% 7.84% 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% —
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 0.85

Dividend

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 4.15% 0.76% 1.70%
Payout ratio 0.31 0.29 0.00

Size

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Market cap 19.99b 29.19b 337.35m

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