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 $33.9B against $21.8B — 1.6× the size. Viatris Inc. has negative trailing earnings, so its P/E is not meaningful; Zoetis Inc. trades at 13.4×. Viatris Inc. grew revenue faster over the last twelve months: 4.27% against 1.58%. Zoetis Inc. has the higher net margin (27.7% vs −4.13%) and the higher return on invested capital (19.6% vs −0.02%). Both pay a dividend; Zoetis Inc. yields more (2.59% vs 2.54%). 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 13.44 20.55
P/S 1.49 3.58 2.08
P/B 1.61 10.84 1.79
Price to free cash flow 10.69 14.67 16.29
EV/EBITDA 12.34 10.66 12.22
EV/Sales 2.28 4.50 2.87
Earnings yield (2.81%) 7.44% (15.94%)
Free cash flow yield 9.35% 6.82% 0.00%

Profitability

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Gross margin 35.31% 71.67% 53.51%
Operating margin (0.03%) 37.13% 0.00%
Net margin (4.13%) 27.69% (2.45%)
Free cash flow margin 16.27% 24.43% 0.00%
Return on equity (4.21%) 64.91% (0.80%)
Return on assets (1.67%) 17.84% (1.67%)
Return on invested capital (0.02%) 19.60% 0.00%

Growth

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 4.27% 1.58% 5.22%
EPS growth (last fiscal year) (466.04%) 10.05% 42.91%
Revenue growth, 5-year CAGR 3.66% 7.24% 7.24%
Net income growth, 5-year CAGR 0.00% 10.29% 0.00%

Health

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Debt to equity 0.13 2.87 0.04
Current ratio 1.55 3.08 2.41
Net debt to EBITDA 4.92 1.65 1.01

Dividend

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Dividend yield 2.54% 2.59% 1.45%
Payout ratio — 0.35 0.27

Size

Metric VTRS ZTS Drug Manufacturers Specialty & Generic median
Market cap 21.79b 33.93b 315.39m

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