Zoetis (NYSE:ZTS – Get Free Report) and Pharming Group (OTCMKTS:PHGUF – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Earnings & Valuation
This table compares Zoetis and Pharming Group”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Zoetis | $9.26 billion | 7.82 | $2.49 billion | $5.47 | 29.57 |
Pharming Group | $245.32 million | 2.16 | -$10.55 million | ($0.02) | -39.50 |
Zoetis has higher revenue and earnings than Pharming Group. Pharming Group is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Zoetis | 0 | 1 | 9 | 2 | 3.08 |
Pharming Group | 0 | 0 | 0 | 0 | 0.00 |
Zoetis presently has a consensus target price of $215.90, indicating a potential upside of 33.48%. Given Zoetis’ stronger consensus rating and higher probable upside, research analysts clearly believe Zoetis is more favorable than Pharming Group.
Insider & Institutional Ownership
92.8% of Zoetis shares are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Zoetis and Pharming Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Zoetis | 26.86% | 53.82% | 18.86% |
Pharming Group | -6.09% | -7.65% | -3.82% |
Volatility & Risk
Zoetis has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Pharming Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
Summary
Zoetis beats Pharming Group on 15 of the 15 factors compared between the two stocks.
About Zoetis
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses. It also offers parasiticides, vaccines, dermatology, other pharmaceutical, anti-infectives, animal health diagnostics, and medicated feed additives. In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaboration Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was founded in 1952 and is headquartered in Parsippany, New Jersey.
About Pharming Group
Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.
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