Urogen Pharma (NASDAQ:URGN) & Zoetis (NYSE:ZTS) Head to Head Review
by Mitch Edgeman · The Markets DailyZoetis (NYSE:ZTS – Get Free Report) and Urogen Pharma (NASDAQ:URGN – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Earnings & Valuation
This table compares Zoetis and Urogen Pharma”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zoetis | $9.53 billion | 3.17 | $2.67 billion | $6.07 | 12.03 |
| Urogen Pharma | $109.79 million | 18.84 | -$153.49 million | ($1.98) | -21.37 |
Zoetis has higher revenue and earnings than Urogen Pharma. Urogen Pharma is trading at a lower price-to-earnings ratio than Zoetis, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.8% of Zoetis shares are owned by institutional investors. Comparatively, 91.3% of Urogen Pharma shares are owned by institutional investors. 0.2% of Zoetis shares are owned by insiders. Comparatively, 4.8% of Urogen Pharma 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.
Profitability
This table compares Zoetis and Urogen Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zoetis | 27.49% | 74.89% | 18.59% |
| Urogen Pharma | -51.73% | N/A | -43.79% |
Analyst Recommendations
This is a breakdown of recent ratings for Zoetis and Urogen Pharma, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zoetis | 2 | 9 | 8 | 0 | 2.32 |
| Urogen Pharma | 1 | 1 | 8 | 0 | 2.70 |
Zoetis presently has a consensus price target of $101.08, suggesting a potential upside of 38.36%. Urogen Pharma has a consensus price target of $52.38, suggesting a potential upside of 23.79%. Given Zoetis’ higher probable upside, research analysts clearly believe Zoetis is more favorable than Urogen Pharma.
Volatility and Risk
Zoetis has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Urogen Pharma has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
Summary
Zoetis beats Urogen Pharma on 9 of the 13 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 Urogen Pharma
UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization of solutions for urothelial and specialty cancers. It offers RTGel, a novel proprietary polymeric biocompatible, reverse thermal gelation hydrogel technology to improve therapeutic profiles of existing drugs; and Jelmyto for pyelocalyceal solution. The company's lead product candidate is UGN-102 for the treatment of several forms of non-muscle invasive urothelial cancer that include low-grade upper tract urothelial cancer and low-grade intermediate risk non-muscle invasive bladder cancer (NMIBC). It is also developing UGN-301 for the treatment of high-grade NMIBC. The company has license agreement with Agenus Inc. to develop, make, use, sell, import, and commercialize products of Agenus for the treatment of cancers of the urinary tract via intravesical delivery; strategic research collaboration agreement with MD Anderson focusing on the sequential use of UGN-201 and UGN-301 for the treatment of NMIBC; and licensing and supply agreement with medac Gesellschaft für klinische Spezialpräparate m.b.H. to develop UGN-103 in low-grade intermediate risk NMIBC and UGN-104 in low-grade upper tract urothelial carcinoma. UroGen Pharma Ltd. was incorporated in 2004 and is based in Princeton, New Jersey.