Elanco Animal Health vs Zoetis Which Is a Smarter Choice?

Elanco Animal Health and Zoetis are two major players in the animal health industry, both specializing in the development and distribution of pharmaceutical products for livestock and companion animals. Elanco, a spin-off of pharmaceutical giant Eli Lilly, focuses on improving animal health through innovative solutions. Zoetis, on the other hand, is the largest animal health company in the world, known for its wide range of products and services. Investors looking to capitalize on the growing demand for animal health products may consider comparing the stocks of these two companies.

Elanco Animal Health or Zoetis?

When comparing Elanco Animal Health and Zoetis, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Elanco Animal Health and Zoetis.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Elanco Animal Health has a dividend yield of -%, while Zoetis has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Elanco Animal Health reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Zoetis reports a 5-year dividend growth of 24.37% year and a payout ratio of 31.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Elanco Animal Health P/E ratio at 30.36 and Zoetis's P/E ratio at 33.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Elanco Animal Health P/B ratio is 0.95 while Zoetis's P/B ratio is 15.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Elanco Animal Health has seen a 5-year revenue growth of -0.08%, while Zoetis's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Elanco Animal Health 's ROE at 3.31% and Zoetis's ROE at 47.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.43 for Elanco Animal Health and $176.76 for Zoetis. Over the past year, Elanco Animal Health 's prices ranged from $11.40 to $18.80, with a yearly change of 64.91%. Zoetis's prices fluctuated between $144.80 and $201.92, with a yearly change of 39.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.