Analyzing Zoetis (NYSE:ZTS) and Shionogi & Co., Ltd. Unsponsored ADR (OTCMKTS:SGIOY)

Zoetis (NYSE:ZTS) and Shionogi & Co., Ltd. Unsponsored ADR (OTCMKTS:SGIOY) are both large-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Zoetis and Shionogi & Co., Ltd. Unsponsored ADR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	0	5	6	0	2.55
Shionogi & Co., Ltd. Unsponsored ADR	0	0	0	0	0.00

Zoetis currently has a consensus price target of $180.00, suggesting a potential upside of 49.03%. Given Zoetis’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Zoetis is more favorable than Shionogi & Co., Ltd. Unsponsored ADR.

Institutional & Insider Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 1.9% of Shionogi & Co., Ltd. Unsponsored ADR shares are owned by institutional investors. 0.2% of Zoetis shares are owned 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.

Valuation and Earnings

This table compares Zoetis and Shionogi & Co., Ltd. Unsponsored ADR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoetis	$9.40 billion	5.66	$2.49 billion	$5.94	20.33
Shionogi & Co., Ltd. Unsponsored ADR	$2.88 billion	5.20	$1.12 billion	$0.64	13.73

Zoetis has higher revenue and earnings than Shionogi & Co., Ltd. Unsponsored ADR. Shionogi & Co., Ltd. Unsponsored ADR is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zoetis and Shionogi & Co., Ltd. Unsponsored ADR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoetis	27.83%	56.90%	19.54%
Shionogi & Co., Ltd. Unsponsored ADR	39.53%	12.25%	10.94%

Dividends

Zoetis pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. Shionogi & Co., Ltd. Unsponsored ADR pays an annual dividend of $0.15 per share and has a dividend yield of 1.7%. Zoetis pays out 33.7% of its earnings in the form of a dividend. Shionogi & Co., Ltd. Unsponsored ADR pays out 23.4% 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. Shionogi & Co., Ltd. Unsponsored ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Zoetis has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Shionogi & Co., Ltd. Unsponsored ADR has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Summary

Zoetis beats Shionogi & Co., Ltd. Unsponsored ADR on 14 of the 17 factors compared between the two stocks.

About Zoetis

Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses. It also offers parasiticides, vaccines, dermatology, other pharmaceutical, anti-infectives, animal health diagnostics, and medicated feed additives. In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaboration Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was founded in 1952 and is headquartered in Parsippany, New Jersey.

About Shionogi & Co., Ltd. Unsponsored ADR

Shionogi & Co., Ltd. engages in the research, development, manufacture, and distribution of pharmaceuticals, diagnostic reagents, and medical devices in Japan. It offers Fetroja, a multidrug-resistant for gram-negative bacterial infection treatment; Cabenuva and Apretude an anti-HIV and HIV prophylactic drug; Xocova an oral COVID-19 treatment drug; Finibax a carbapenem antibiotic; Xofluza, an influenza antiviral drug; and Tivicay, an anti-HIV drug. It also develops S-872600 an influenza nasal vaccine; S-875670 anCOVID-19 nasal vaccine; S-540956 a nucleic acid adjuvant; S-554110 a nontuberculous mycobacterial infection; S-337395 for RSV infections; S-892216 for COVID-19 therapeutics; Olorofim for invasive aspergillosis; cefiderocol for aerobic gram-negative bacterial infections and infectious diseases; S-268019 a COVID-19 prophylactic vaccine; S-268019 a prophylactic vaccine for COVID-19; ensitrelvir for COVID-19 treatment and prevention; baloxavir for influenza virus infection; S-365598 for HIV infection; and S-555739 for suppressing aggravation of COVID-19. In addition, the company develops S-540956 for nucleic acid adjuvant; S-109802 for post-stroke spasticity; S-151128 for chronic pain; S-588210 and S-531011 for solid tumor; S-309309 for obesity; BPN14770 for Alzheimer’s disease and fragile X syndrome; S-588410 for bladder cancer; S-488210 for head and neck squamous cell carcinoma; S-005151 for Acute ischemic stroke and epidermolysis bullosa; Rizmoic for opioid-induced constipation; ADR-001 for decompensated liver cirrhosis; S-222611 for malignant tumor; S-812217 for depression; GRT7039 for pain associated with osteoarthritis of the knee; SDT-001 for inattentive ADHD; S-588410 for esophageal cancer; SR-0379 for cutaneous ulcer; and S-723595 for type 2 diabetes. The company was formerly known as Shionogi Shoten Co., Ltd. and changed its name to Shionogi & Co., Ltd. in 1943. Shionogi & Co., Ltd. was founded in 1878 and is headquartered in Osaka, Japan.