Zoetis vs Neogen Which Offers More Value?

Zoetis and Neogen are both prominent companies in the animal health industry, specializing in the development and distribution of products for livestock and companion animals. Zoetis, a global leader in the field, has a strong market presence and a diverse portfolio of innovative solutions. Neogen, while smaller in size, is known for its cutting-edge technologies and commitment to food safety. Investors often compare the stocks of these two companies to determine which offers the better investment opportunity in this growing sector.

Zoetis or Neogen?

When comparing Zoetis and Neogen, 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 Zoetis and Neogen.

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. Zoetis has a dividend yield of 1.23%, while Neogen has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zoetis reports a 5-year dividend growth of 24.37% year and a payout ratio of 31.44%. On the other hand, Neogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Zoetis P/E ratio at 32.83 and Neogen's P/E ratio at -151.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zoetis P/B ratio is 15.24 while Neogen's P/B ratio is 1.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zoetis has seen a 5-year revenue growth of 0.54%, while Neogen's is 0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zoetis's ROE at 47.99% and Neogen's ROE at -0.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.00 for Zoetis and $16.04 for Neogen. Over the past year, Zoetis's prices ranged from $144.80 to $201.92, with a yearly change of 39.45%. Neogen's prices fluctuated between $11.46 and $20.89, with a yearly change of 82.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.