Head-To-Head Survey: Cassava Sciences (NASDAQ:SAVA) & Zoetis (NYSE:ZTS)

by · The Markets Daily

Cassava Sciences (NASDAQ:SAVAGet Free Report) and Zoetis (NYSE:ZTSGet Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Cassava Sciences and Zoetis’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Cassava SciencesN/A-63.39%-49.81%
Zoetis28.21%57.19%19.53%

Earnings and Valuation

This table compares Cassava Sciences and Zoetis”s revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Cassava SciencesN/AN/A-$24.34 million($2.19)-0.90
Zoetis$9.26 billion5.99$2.49 billion$5.9421.18

Zoetis has higher revenue and earnings than Cassava Sciences. Cassava Sciences is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Cassava Sciences has a beta of -1, suggesting that its share price is 200% less volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Cassava Sciences and Zoetis, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Cassava Sciences11001.50
Zoetis17602.36

Cassava Sciences presently has a consensus target price of $2.00, suggesting a potential upside of 1.01%. Zoetis has a consensus target price of $160.18, suggesting a potential upside of 27.31%. Given Zoetis’ stronger consensus rating and higher probable upside, analysts plainly believe Zoetis is more favorable than Cassava Sciences.

Institutional and Insider Ownership

38.1% of Cassava Sciences shares are owned by institutional investors. Comparatively, 92.8% of Zoetis shares are owned by institutional investors. 2.4% of Cassava Sciences 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 will outperform the market over the long term.

Summary

Zoetis beats Cassava Sciences on 12 of the 13 factors compared between the two stocks.

About Cassava Sciences

(Get Free Report)

Cassava Sciences, Inc., a clinical stage biotechnology company, develops drugs for neurodegenerative diseases. Its lead therapeutic product candidate is simufilam, a small molecule drug, which is completed Phase 2 clinical trial; and investigational diagnostic product candidate is SavaDx, a blood-based biomarker/diagnostic to detect Alzheimer's disease. The company was formerly known as Pain Therapeutics, Inc. and changed its name to Cassava Sciences, Inc. in March 2019. Cassava Sciences, Inc. was incorporated in 1998 and is based in Austin, Texas.

About Zoetis

(Get Free Report)

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.