Seek Returns

Zoetis (ZTS) Stock Analysis

This is a peer-relative look at Zoetis (ZTS): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Zoetis (ZTS)
Profile ItemZTS
NameZoetis Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
GICS Sub-IndustryPharmaceuticals
Market Capitalization32.26 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateFebruary 1, 2013
Security TypeCommon Stock

Price Performance

Cumulative Growth

ZTS
GSPC
Loading price history…
Zoetis (ZTS) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Zoetis (ZTS) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Zoetis (ZTS) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Total Return (1Y)-30.10%24.62%
Total Return (3Y, Annualized)-20.42%20.37%
Total Return (5Y, Annualized)-16.87%-4.02%

Risk Profile

Drawdown History

ZTS
GSPC
Loading price history…
Zoetis (ZTS) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Zoetis (ZTS) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Volatility (1Y, Annualized)38.23%66.36%
Beta (5Y)0.660.93
Max Drawdown (5Y)-70.45%-80.19%

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ZTS is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Sharpe Ratio (1Y)-0.900.36
Sortino Ratio (1Y)-1.100.58

Profitability

ROE (TTM)

Zoetis (ZTS) posts ROE of 57.63%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

57.63%

Group distribution
Max
109.18%
ZTS
57.63%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
Largest peers
LLY
86.02%
ZTS
57.63%
NVS
24.33%
AZN
22.57%
JNJ
20.02%
MRK
5.06%
ABBV
--
Loading chart…
Where Zoetis (ZTS) stands on ROE within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Zoetis (ZTS) keeps 26.41% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

26.41%

Group distribution
ZTS
26.41%
Max
18.05%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%
Largest peers
LLY
31.90%
ZTS
26.41%
AZN
17.68%
NVS
17.49%
JNJ
16.20%
ABBV
15.67%
MRK
3.64%
Loading chart…
Where Zoetis (ZTS) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Zoetis (ZTS) turns 38.19% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

38.19%

Group distribution
Max
83.12%
ZTS
38.19%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%
Largest peers
LLY
53.66%
ABBV
39.59%
ZTS
38.19%
MRK
35.22%
NVS
34.27%
AZN
29.57%
JNJ
25.74%
Loading chart…
Where Zoetis (ZTS) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
ROE (TTM)57.63%-26.66%
ROA (TTM)14.87%-12.50%
Net Margin (TTM)26.41%0.00%
Operating Margin (TTM)38.19%0.00%
Gross Margin (TTM)71.65%37.87%

Growth

Revenue Growth

Zoetis (ZTS) grew revenue 2.28%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Loading chart…
Zoetis (ZTS): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Zoetis (ZTS) grew earnings per share 10.05%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Loading chart…
Zoetis (ZTS): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Revenue Growth (YoY)2.28%11.45%
Revenue Growth (3Y CAGR)5.42%9.94%
EPS Growth (YoY)10.05%4.28%
EPS Growth (3Y CAGR)10.27%4.17%

Financial Strength

Current Ratio (MRQ)

Zoetis (ZTS) has current ratio of 2.35, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.35

Group distribution
Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
ZTS
2.35
Min
0.10
Largest peers
ZTS
2.35
LLY
1.39
MRK
1.35
JNJ
1.02
AZN
1.01
NVS
0.88
ABBV
0.87
Loading chart…
Where Zoetis (ZTS) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Zoetis (ZTS) has debt-to-equity ratio of 2.80, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.80

Group distribution
ZTS
2.80
Max
1.42
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00
Largest peers
ZTS
2.80
NVS
1.29
LLY
1.23
MRK
1.20
AZN
0.66
JNJ
0.55
ABBV
--
Loading chart…
Where Zoetis (ZTS) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Current Ratio (MRQ)2.355.52
Debt / Equity (MRQ)2.800.15
Net Debt / EBITDA1.921.08

Dividends

Dividend Yield (TTM)

Zoetis (ZTS) has dividend yield of 2.55%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.55%

Group distribution
ZTS
2.55%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NVS
2.88%
ZTS
2.55%
ABBV
2.40%
MRK
2.29%
JNJ
1.94%
AZN
1.73%
LLY
0.49%
Loading chart…
Where Zoetis (ZTS) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Zoetis (ZTS) has payout ratio of 35.24%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.24%

Group distribution
ZTS
35.24%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MRK
343.43%
ABBV
117.35%
NVS
90.46%
JNJ
80.12%
AZN
45.38%
ZTS
35.24%
LLY
21.71%
Loading chart…
Where Zoetis (ZTS) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
Dividend Yield (TTM)2.55%0.00%
Dividend Payout Ratio (TTM)35.24%0.00%

Valuation

P/E Ratio (TTM)

Zoetis (ZTS) trades at P/E ratio of 13.50, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

13.50

Group distribution
Max
85.34
Q3
43.46
Median
26.69
ZTS
13.50
Q1
13.30
Min
0.07
Largest peers
MRK
148.21
ABBV
50.05
LLY
43.95
JNJ
41.92
NVS
31.02
AZN
26.37
ZTS
13.50
Loading chart…
Where Zoetis (ZTS) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Zoetis (ZTS) trades at 3.40 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.40

Group distribution
Max
58.18
Q3
25.77
Median
7.30
ZTS
3.40
Q1
3.01
Min
0.01
Largest peers
LLY
13.95
ABBV
7.80
JNJ
6.69
MRK
5.37
NVS
5.35
AZN
4.63
ZTS
3.40
Loading chart…
Where Zoetis (ZTS) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Zoetis (ZTS) trades at 9.80 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

9.80

Group distribution
Max
13.53
ZTS
9.80
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59
Largest peers
LLY
29.96
ZTS
9.80
NVS
8.25
JNJ
8.16
MRK
8.06
AZN
5.59
ABBV
-112.34
Loading chart…
Where Zoetis (ZTS) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Zoetis (ZTS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ZTSIndustry group median
P/E Ratio (TTM)13.5026.69
P/S Ratio (TTM)3.407.30
P/B Ratio (MRQ)9.803.25
Free Cash Flow Yield (TTM)6.36%-1.66%