Royalty Pharma (RPRX) Competitors

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

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

54.4% 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 insiders. Comparatively, 0.2% of Zoetis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Does the media favor RPRX or ZTS?

In the previous week, Zoetis had 12 more articles in the media than Royalty Pharma. MarketBeat recorded 31 mentions for Zoetis and 19 mentions for Royalty Pharma. Zoetis' average media sentiment score of 1.47 beat Royalty Pharma's score of 1.15 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	11 Very Positive mention(s)	5 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Zoetis	26 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, RPRX or ZTS?

Royalty Pharma has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.91, meaning that its share price is 9% 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 2.4%. Zoetis pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. 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 increased its dividend for 5 consecutive years and Zoetis has increased its dividend for 14 consecutive years.

Do analysts rate RPRX or ZTS?

Royalty Pharma presently has a consensus target price of $47.33, indicating a potential upside of 30.79%. Zoetis has a consensus target price of $212.13, indicating a potential upside of 33.34%. Given Zoetis' higher possible 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)	0 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.25
Zoetis	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	3.00

Which has better valuation and 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	8.99	$858.98M	$1.85	19.56
Zoetis	$9.26B	7.65	$2.49B	$5.57	28.56

Is RPRX or ZTS more profitable?

Royalty Pharma has a net margin of 48.23% compared to Zoetis' net margin of 27.12%. Zoetis' return on equity of 55.48% beat Royalty Pharma's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royalty Pharma	48.23%	24.71%	13.87%
Zoetis	27.12%	55.48%	19.14%

Summary

Zoetis beats Royalty Pharma on 15 of the 20 factors compared between the two stocks.