Royalty Pharma (RPRX) Competitors

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

Is ZTS or RPRX 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
Zoetis	26.86%	53.82%	18.86%
Royalty Pharma	37.94%	24.40%	14.01%

Is ZTS or RPRX a better dividend stock?

Zoetis pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. Royalty Pharma pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. Zoetis pays out 36.6% of its earnings in the form of a dividend. Royalty Pharma pays out 57.9% 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 increased its dividend for 14 consecutive years.

Does the MarketBeat Community prefer ZTS or RPRX?

Zoetis received 589 more outperform votes than Royalty Pharma when rated by MarketBeat users. Likewise, 78.03% of users gave Zoetis an outperform vote while only 67.92% of users gave Royalty Pharma an outperform vote.

Company	Underperform	Outperform
Zoetis	Outperform Votes 913 78.03%	Underperform Votes 257 21.97%
Royalty Pharma	Outperform Votes 324 67.92%	Underperform Votes 153 32.08%

Which has higher earnings & valuation, ZTS or RPRX?

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
Zoetis	$9.26B	7.76	$2.49B	$5.47	29.32
Royalty Pharma	$2.26B	8.70	$858.98M	$1.45	23.05

Does the media refer more to ZTS or RPRX?

In the previous week, Zoetis had 56 more articles in the media than Royalty Pharma. MarketBeat recorded 62 mentions for Zoetis and 6 mentions for Royalty Pharma. Royalty Pharma's average media sentiment score of 1.20 beat Zoetis' score of 0.99 indicating that Royalty Pharma is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Zoetis	42 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	6 Negative mention(s)	1 Very Negative mention(s)	Positive
Royalty Pharma	5 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, ZTS or RPRX?

Zoetis has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Royalty Pharma has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Do analysts rate ZTS or RPRX?

Zoetis currently has a consensus target price of $214.90, indicating a potential upside of 33.98%. Royalty Pharma has a consensus target price of $41.60, indicating a potential upside of 24.48%. Given Zoetis' stronger consensus rating and higher possible upside, analysts clearly believe Zoetis is more favorable than Royalty Pharma.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	0 Sell rating(s)	1 Hold rating(s)	9 Buy rating(s)	2 Strong Buy rating(s)	3.08
Royalty Pharma	0 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	3.00

Do insiders and institutionals believe in ZTS or RPRX?

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 54.4% of Royalty Pharma shares are owned by institutional investors. 0.2% of Zoetis shares are owned by company insiders. Comparatively, 18.9% of Royalty Pharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Zoetis beats Royalty Pharma on 17 of the 22 factors compared between the two stocks.