Financial Review: Urogen Pharma (NASDAQ:URGN) versus Zoetis (NYSE:ZTS)

Urogen Pharma (NASDAQ:URGN) and Zoetis (NYSE:ZTS) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Urogen Pharma and Zoetis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urogen Pharma	1	1	8	0	2.70
Zoetis	2	9	8	0	2.32

Urogen Pharma presently has a consensus price target of $52.38, suggesting a potential upside of 21.87%. Zoetis has a consensus price target of $101.08, suggesting a potential upside of 37.15%. Given Zoetis’ higher possible upside, analysts plainly believe Zoetis is more favorable than Urogen Pharma.

Insider and Institutional Ownership

91.3% of Urogen Pharma shares are owned by institutional investors. Comparatively, 92.8% of Zoetis shares are owned by institutional investors. 4.8% of Urogen Pharma shares are owned by insiders. Comparatively, 0.2% of Zoetis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Urogen Pharma and Zoetis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urogen Pharma	-51.73%	N/A	-43.79%
Zoetis	27.49%	74.89%	18.59%

Earnings and Valuation

This table compares Urogen Pharma and Zoetis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urogen Pharma	$109.79 million	19.13	-$153.49 million	($1.98)	-21.70
Zoetis	$9.47 billion	3.22	$2.67 billion	$6.07	12.14

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.

Risk & Volatility

Urogen Pharma has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Zoetis has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Summary

Zoetis beats Urogen Pharma on 9 of the 13 factors compared between the two stocks.

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.

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.