Financial Comparison: Zoetis (NYSE:ZTS) vs. Karyopharm Therapeutics (NASDAQ:KPTI)

Zoetis (NYSE:ZTS) and Karyopharm Therapeutics (NASDAQ:KPTI) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Zoetis and Karyopharm Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	2	9	8	0	2.32
Karyopharm Therapeutics	1	2	3	1	2.57

Zoetis currently has a consensus target price of $101.08, suggesting a potential upside of 41.30%. Karyopharm Therapeutics has a consensus target price of $11.50, suggesting a potential upside of 511.70%. Given Karyopharm Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Karyopharm Therapeutics is more favorable than Zoetis.

Volatility and Risk

Zoetis has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Karyopharm Therapeutics has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Zoetis and Karyopharm Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoetis	27.49%	74.89%	18.59%
Karyopharm Therapeutics	-153.28%	N/A	-145.18%

Valuation & Earnings

This table compares Zoetis and Karyopharm Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoetis	$9.47 billion	3.12	$2.67 billion	$6.07	11.78
Karyopharm Therapeutics	$146.07 million	0.29	-$196.04 million	($13.09)	-0.14

Zoetis has higher revenue and earnings than Karyopharm Therapeutics. Karyopharm Therapeutics is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 66.4% of Karyopharm Therapeutics shares are owned by institutional investors. 0.2% of Zoetis shares are owned by company insiders. Comparatively, 1.7% of Karyopharm Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Zoetis beats Karyopharm Therapeutics on 10 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 Karyopharm Therapeutics

Karyopharm Therapeutics Inc., a commercial-stage pharmaceutical company, discovers, develops, and commercializes drugs directed against nuclear export for the treatment of cancer and other diseases in the United States. The company discovers, develops, and commercializes novel and small molecule Selective Inhibitor of Nuclear Export (SINE) compounds that inhibit the nuclear export protein exportin 1 (XPO1). Its lead compound, include XPOVIO in combination with bortezomib and dexamethasone for the treatment of adult patients with multiple myeloma; in combination with dexamethasone for the treatment of adult patients with relapsed or refractory multiple myeloma; and for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). It also developing Selinexor for treating hematological and solid tumor malignancies, including multiple myeloma, endometrial cancer, myelofibrosis, and DLBCL; and ELTANEXOR for treating Myelodysplastic Neoplasms, as well as verdinexor, KPT-9274, and IL-12 compounds. The company has license agreement with Menarini Group to develop and commercialize selinexor for human oncology indications; license agreement with Antengene Therapeutics Limited to develop and commercialize selinexor, eltanexor, and KPT-9274 for the treatment and/or prevention of human oncology indications, as well as verdinexor for the diagnosis, treatment, and/or prevention of human non-oncology indications; and distribution agreement for the commercialization of XPOVIO with FORUS Therapeutics Inc. Further, it has a collaboration with Bristol Myers Squibb company to evaluate novel cereblon E3 ligase modulator agent mezigdomide in combination with Selinexor in patients with relapsed/refractory multiple myeloma. Karyopharm Therapeutics Inc. was incorporated in 2008 and is headquartered in Newton, Massachusetts.