ZTS vs ELAN

For growth investors, Elanco Animal Health Incorporated (ELAN) is the stronger pick with 6.

2% revenue growth year-over-year, versus 2. 3% for Zoetis Inc. (ZTS). Zoetis Inc. (ZTS) offers the better valuation at 18. 5x trailing P/E (15. 8x forward), making it the more compelling value choice. Analysts rate Elanco Animal Health Incorporated (ELAN) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Zoetis Inc.

is actually cheaper at 15. 8x.

Over the past 5 years, Elanco Animal Health Incorporated (ELAN) delivered a total return of -15.

7%, compared to -28. 8% for Zoetis Inc. (ZTS). Over 10 years, the gap is even starker: ZTS returned +158. 5% versus ELAN's -27. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Zoetis Inc.

(ZTS) is the lower-risk stock at 0. 90β versus Elanco Animal Health Incorporated's 1. 42β — meaning ELAN is approximately 57% more volatile than ZTS relative to the S&P 500. On balance sheet safety, Elanco Animal Health Incorporated (ELAN) carries a lower debt/equity ratio of 61% versus 3% for Zoetis Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Elanco Animal Health Incorporated (ELAN) is pulling ahead at 6.

2% versus 2. 3% for Zoetis Inc. (ZTS). On earnings-per-share growth, the picture is similar: Zoetis Inc. grew EPS 10. 1% year-over-year, compared to -169. 1% for Elanco Animal Health Incorporated. Over a 3-year CAGR, ZTS leads at 5. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Zoetis Inc.

(ZTS) is the more profitable company, earning 28. 2% net margin versus -4. 9% for Elanco Animal Health Incorporated — meaning it keeps 28. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZTS leads at 38. 0% versus 5. 3% for ELAN. At the gross margin level — before operating expenses — ZTS leads at 70. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Zoetis Inc.

(ZTS) trades at 15. 8x forward P/E versus 25. 4x for Elanco Animal Health Incorporated — 9. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZTS: 28. 6% to $143. 00.

In this comparison, ZTS (1.

8% yield) pays a dividend. ELAN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Zoetis Inc.

(ZTS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 90), 1. 8% yield, +158. 5% 10Y return). Both have compounded well over 10 years (ZTS: +158. 5%, ELAN: -27. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

ZTS pays a dividend while ELAN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.