Head-To-Head Contrast: Pharming Group (OTCMKTS:PHGUF) versus Zoetis (NYSE:ZTS)

Pharming Group (OTCMKTS:PHGUF) and Zoetis (NYSE:ZTS) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

92.8% of Zoetis shares are held by institutional investors. 0.2% of Zoetis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Pharming Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares Pharming Group and Zoetis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pharming Group	-6.09%	-7.65%	-3.82%
Zoetis	26.86%	53.82%	18.86%

Valuation and Earnings

This table compares Pharming Group and Zoetis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pharming Group	$245.32 million	2.47	-$10.55 million	($0.02)	-45.22
Zoetis	$9.26 billion	8.24	$2.49 billion	$5.47	31.14

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pharming Group and Zoetis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharming Group	0	0	0	0	0.00
Zoetis	0	1	9	2	3.08

Zoetis has a consensus target price of $215.90, indicating a potential upside of 26.75%. Given Zoetis’ stronger consensus rating and higher probable upside, analysts clearly believe Zoetis is more favorable than Pharming Group.

Summary

Zoetis beats Pharming Group on 15 of the 15 factors compared between the two stocks.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.

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.