Analyzing Zoetis (NYSE:ZTS) and Evolus (NASDAQ:EOLS)

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

Analyst Ratings

This is a summary of current ratings and price targets for Zoetis and Evolus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	2	9	8	0	2.32
Evolus	1	1	4	0	2.50

Zoetis currently has a consensus target price of $101.08, suggesting a potential upside of 41.55%. Evolus has a consensus target price of $14.50, suggesting a potential upside of 94.11%. Given Evolus’ stronger consensus rating and higher probable upside, analysts clearly believe Evolus is more favorable than Zoetis.

Risk & Volatility

Zoetis has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Evolus has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares Zoetis and Evolus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoetis	$9.53 billion	3.10	$2.67 billion	$6.07	11.76
Evolus	$316.49 million	1.56	-$51.64 million	($0.52)	-14.37

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zoetis	27.49%	74.89%	18.59%
Evolus	-10.85%	N/A	-13.00%

Institutional and Insider Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 90.7% of Evolus shares are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Comparatively, 5.0% of Evolus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Zoetis beats Evolus on 10 of the 14 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 Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.