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VRTX vs. ZTS: Vertex Pharmaceuticals vs. Zoetis Stock Comparison

How do Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS) both fall under the Pharmaceuticals, Biotechnology & Life Sciences industry group, but VRTX is classified in Biotechnology while ZTS is classified in Pharmaceuticals.

Company profile comparison for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
Profile ItemVRTXZTS
NameVertex Pharmaceuticals Incorporated Common StockZoetis Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life SciencesPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnologyPharmaceuticals
GICS Sub-IndustryBiotechnologyPharmaceuticals
Market Capitalization138.71 billion USD32.26 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJuly 24, 1991February 1, 2013
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

VRTX
ZTS
GSPC
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Total Return (1Y)34.89%-30.10%
Total Return (3Y, Annualized)14.44%-20.42%
Total Return (5Y, Annualized)23.65%-16.87%

Risk Profile

Drawdown History

VRTX
ZTS
GSPC
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS), with S&P 500 (GSPC) for reference: 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

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Distribution of monthly total returns for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Volatility (1Y, Annualized)29.73%38.23%
Beta (5Y)0.290.66
Max Drawdown (5Y)-29.07%-70.45%
Avg. Volume (3M)1.25M4.65M

Risk-Adjusted Performance

Risk-Return Positioning

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VRTX and ZTS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Sharpe Ratio (1Y)1.03-0.90
Sortino Ratio (1Y)1.68-1.10

Profitability

ROE (TTM)

Both Vertex Pharmaceuticals (VRTX) at 20.80% and Zoetis (ZTS) at 57.63% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

20.80%

Max
109.18%
VRTX
20.80%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

57.63%

Max
109.18%
ZTS
57.63%
Q3
6.23%
Median
-26.66%
Q1
-64.05%
Min
-167.77%
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their ROE against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Net Margin (TTM)

Both Vertex Pharmaceuticals (VRTX) at 30.70% and Zoetis (ZTS) at 26.41% keep an unusually large share of revenue as bottom-line profit — each net margin clears its industry’s benchmark range.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

30.70%

VRTX
30.70%
Max
18.05%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

26.41%

ZTS
26.41%
Max
18.05%
Q3
4.78%
Median
0.00%
Q1
-4.14%
Min
-17.05%
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their net margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Operating Margin (TTM)

Both Vertex Pharmaceuticals (VRTX) at 35.57% and Zoetis (ZTS) at 38.19% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.57%

Max
83.12%
VRTX
35.57%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

38.19%

Max
83.12%
ZTS
38.19%
Q3
14.77%
Median
0.00%
Q1
-78.82%
Min
-207.40%
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their operating margin against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Profitability Metrics

Profitability metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
ROE (TTM)20.80%57.63%
ROA (TTM)10.62%14.87%
Net Margin (TTM)30.70%26.41%
Operating Margin (TTM)35.57%38.19%
Gross Margin (TTM)54.81%71.65%

Growth

Revenue Growth

Both Vertex Pharmaceuticals (VRTX) at 8.90% and Zoetis (ZTS) at 2.28% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Zoetis (ZTS) reports EPS growth of 10.05%, ranked against its industry; Vertex Pharmaceuticals (VRTX) has no EPS growth figure this period.

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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Revenue Growth (YoY)8.90%2.28%
Revenue Growth (3Y CAGR)10.35%5.42%
EPS Growth (YoY)--10.05%
EPS Growth (3Y CAGR)6.12%10.27%

Financial Strength

Current Ratio (MRQ)

Both Vertex Pharmaceuticals (VRTX) at 2.34 and Zoetis (ZTS) at 2.35 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.34

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
VRTX
2.34
Min
0.10

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.35

Max
25.13
Q3
12.13
Median
5.52
Q1
2.47
ZTS
2.35
Min
0.10
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their current ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Debt / Equity (MRQ)

Vertex Pharmaceuticals (VRTX) at 0.31 is near its industry mid-range for debt-to-equity ratio, while Zoetis (ZTS) at 2.80 sits above its benchmark range, pointing to a heavier debt load relative to equity.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.31

Max
1.42
Q3
0.65
VRTX
0.31
Median
0.15
Q1
0.02
Min
0.00

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.80

ZTS
2.80
Max
1.42
Q3
0.65
Median
0.15
Q1
0.02
Min
0.00
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their debt-to-equity ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Current Ratio (MRQ)2.342.35
Debt / Equity (MRQ)0.312.80
Net Debt / EBITDA0.031.92

Dividends

Dividend Yield (TTM)

Vertex Pharmaceuticals (VRTX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Zoetis (ZTS) reports a yield of 2.55%, ranking against industry peers normally.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.00%

VRTX
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

2.55%

ZTS
2.55%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their dividend yield against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Payout Ratio (TTM)

Vertex Pharmaceuticals (VRTX) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Zoetis (ZTS) reports a payout of 35.24%, ranking against industry peers normally.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.00%

VRTX
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.24%

ZTS
35.24%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their payout ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Dividend Metrics

Dividend metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
Dividend Yield (TTM)0.00%2.55%
Dividend Payout Ratio (TTM)0.00%35.24%

Valuation

P/E Ratio (TTM)

Both Vertex Pharmaceuticals (VRTX) at 35.21 and Zoetis (ZTS) at 13.50 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

35.21

Max
85.34
Q3
43.46
VRTX
35.21
Median
26.69
Q1
13.30
Min
0.07

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

13.50

Max
85.34
Q3
43.46
Median
26.69
ZTS
13.50
Q1
13.30
Min
0.07
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their P/E ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Vertex Pharmaceuticals (VRTX) at 10.71 and Zoetis (ZTS) at 3.40 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

10.71

Max
58.18
Q3
25.77
VRTX
10.71
Median
7.30
Q1
3.01
Min
0.01

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

3.40

Max
58.18
Q3
25.77
Median
7.30
ZTS
3.40
Q1
3.01
Min
0.01
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their P/S ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

P/B Ratio (MRQ)

Both Vertex Pharmaceuticals (VRTX) at 6.63 and Zoetis (ZTS) at 9.80 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

VRTX

Pharmaceuticals, Biotechnology & Life Sciences industry group

6.63

Max
13.53
VRTX
6.63
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59

ZTS

Pharmaceuticals, Biotechnology & Life Sciences industry group

9.80

Max
13.53
ZTS
9.80
Q3
6.54
Median
3.25
Q1
1.69
Min
-5.59
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Vertex Pharmaceuticals (VRTX) vs. Zoetis (ZTS): A comparison of their P/B ratio against the Pharmaceuticals, Biotechnology & Life Sciences industry group benchmark.

Valuation Metrics

Valuation metrics for Vertex Pharmaceuticals (VRTX) and Zoetis (ZTS)
MetricVRTXZTS
P/E Ratio (TTM)35.2113.50
P/S Ratio (TTM)10.713.40
P/B Ratio (MRQ)6.639.80
Free Cash Flow Yield (TTM)1.69%6.36%