Royalty Pharma (RPRX) Competitors

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

Do institutionals and insiders believe in ZTS or RPRX?

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 54.3% of Royalty Pharma shares are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Comparatively, 18.9% of Royalty Pharma shares are owned by 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.

Which has more volatility & risk, ZTS or RPRX?

Zoetis has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Royalty Pharma has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Does the media favor ZTS or RPRX?

In the previous week, Zoetis had 21 more articles in the media than Royalty Pharma. MarketBeat recorded 43 mentions for Zoetis and 22 mentions for Royalty Pharma. Zoetis' average media sentiment score of 1.33 beat Royalty Pharma's score of 1.30 indicating that Zoetis is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Zoetis	28 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Royalty Pharma	15 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer ZTS or RPRX?

Zoetis presently has a consensus target price of $202.43, suggesting a potential upside of 33.07%. Royalty Pharma has a consensus target price of $48.00, suggesting a potential upside of 30.93%. Given Zoetis' higher possible upside, research analysts plainly 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)	4 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.50
Royalty Pharma	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	3.33

Which has stronger 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	7.28	$2.49B	$5.81	26.18
Royalty Pharma	$2.31B	9.27	$858.98M	$1.73	21.19

Is ZTS or RPRX a better dividend stock?

Zoetis pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Royalty Pharma pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Zoetis pays out 34.4% of its earnings in the form of a dividend. Royalty Pharma pays out 50.9% 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 raised its dividend for 14 consecutive years and Royalty Pharma has raised its dividend for 5 consecutive years.

Is ZTS or RPRX more profitable?

Royalty Pharma has a net margin of 44.23% compared to Zoetis' net margin of 27.83%. Zoetis' return on equity of 56.90% beat Royalty Pharma's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Zoetis	27.83%	56.90%	19.54%
Royalty Pharma	44.23%	25.54%	14.11%

Summary

Zoetis beats Royalty Pharma on 14 of the 20 factors compared between the two stocks.