Royalty Pharma (RPRX) Competitors

Royalty Pharma (NASDAQ:RPRX) and Zoetis (NYSE:ZTS) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their community ranking, valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations, risk and media sentiment.

Do analysts rate RPRX or ZTS?

Royalty Pharma currently has a consensus price target of $42.50, suggesting a potential upside of 32.69%. Zoetis has a consensus price target of $214.40, suggesting a potential upside of 40.57%. Given Zoetis' stronger consensus rating and higher probable upside, analysts clearly believe Zoetis is more favorable than Royalty Pharma.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royalty Pharma	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.00
Zoetis	0 Sell rating(s)	1 Hold rating(s)	9 Buy rating(s)	2 Strong Buy rating(s)	3.08

Which has more volatility and risk, RPRX or ZTS?

Royalty Pharma has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Is RPRX or ZTS a better dividend stock?

Royalty Pharma pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Zoetis pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Royalty Pharma pays out 60.7% of its earnings in the form of a dividend. Zoetis pays out 36.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Zoetis has raised its dividend for 14 consecutive years.

Does the media refer more to RPRX or ZTS?

In the previous week, Zoetis had 29 more articles in the media than Royalty Pharma. MarketBeat recorded 51 mentions for Zoetis and 22 mentions for Royalty Pharma. Zoetis' average media sentiment score of 1.37 beat Royalty Pharma's score of 1.24 indicating that Zoetis is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royalty Pharma	15 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Zoetis	39 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community believe in RPRX or ZTS?

Zoetis received 591 more outperform votes than Royalty Pharma when rated by MarketBeat users. Likewise, 77.96% of users gave Zoetis an outperform vote while only 67.99% of users gave Royalty Pharma an outperform vote.

Company	Underperform	Outperform
Royalty Pharma	Outperform Votes 325 67.99%	Underperform Votes 153 32.01%
Zoetis	Outperform Votes 916 77.96%	Underperform Votes 259 22.04%

Do institutionals & insiders have more ownership in RPRX or ZTS?

54.3% of Royalty Pharma shares are held by institutional investors. Comparatively, 92.8% of Zoetis shares are held by institutional investors. 18.9% of Royalty Pharma shares are held by insiders. Comparatively, 0.2% of Zoetis shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Which has better valuation & earnings, RPRX or ZTS?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royalty Pharma	$2.26B	8.16	$858.98M	$1.45	22.09
Zoetis	$9.26B	7.35	$2.49B	$5.47	27.88

Is RPRX or ZTS more profitable?

Royalty Pharma has a net margin of 37.94% compared to Zoetis' net margin of 26.86%. Zoetis' return on equity of 53.82% beat Royalty Pharma's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royalty Pharma	37.94%	24.40%	14.01%
Zoetis	26.86%	53.82%	18.86%

Summary

Zoetis beats Royalty Pharma on 18 of the 22 factors compared between the two stocks.