Royalty Pharma (RPRX) Competitors

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

Which has more risk & volatility, RPRX or ZTS?

Royalty Pharma has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Does the media refer more to RPRX or ZTS?

In the previous week, Zoetis had 17 more articles in the media than Royalty Pharma. MarketBeat recorded 34 mentions for Zoetis and 17 mentions for Royalty Pharma. Zoetis' average media sentiment score of 1.58 beat Royalty Pharma's score of 1.04 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	10 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Zoetis	29 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Which has stronger 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	8.43	$858.98M	$1.85	17.89
Zoetis	$9.29B	7.85	$2.49B	$5.57	29.38

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%

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 1.2%. Royalty Pharma pays out 47.6% of its earnings in the form of a dividend. Zoetis pays out 35.9% 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. Royalty Pharma has raised its dividend for 5 consecutive years and Zoetis has raised its dividend for 14 consecutive years.

Do institutionals & insiders hold more shares of RPRX or ZTS?

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

Do analysts rate RPRX or ZTS?

Royalty Pharma presently has a consensus target price of $42.50, indicating a potential upside of 28.44%. Zoetis has a consensus target price of $212.75, indicating a potential upside of 30.02%. Given Zoetis' stronger consensus rating and higher probable upside, analysts plainly 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)	7 Buy rating(s)	2 Strong Buy rating(s)	3.10

Does the MarketBeat Community favor RPRX or ZTS?

Zoetis received 590 more outperform votes than Royalty Pharma when rated by MarketBeat users. Likewise, 77.91% of users gave Zoetis an outperform vote while only 67.98% of users gave Royalty Pharma an outperform vote.

Company	Underperform	Outperform
Royalty Pharma	Outperform Votes 327 67.98%	Underperform Votes 154 32.02%
Zoetis	Outperform Votes 917 77.91%	Underperform Votes 260 22.09%

Summary

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