Elanco vs Zoetis
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KIRA’s take AI analyst
I put Elanco and Zoetis side by side, using each one’s latest annual report. Here is what stands out:
- Zoetis is the larger business, with $9.5B of revenue in fiscal 2025 against $4.7B for Elanco, about 2.0 times as much.
- Elanco grew revenue faster (6.2%, against 2.3%).
- Zoetis turned more of its sales into free cash flow (24.1% FCF margin, against 6.0%).
- Zoetis earned a higher return on the capital invested in it (29.3%, against −0.1%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Elanco
ELAN
2/10
Revenue growth5-year growth
Zoetis
ZTS
8/10
Gross marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | ELAN FY25 | ZTS FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.6B | $33.8B |
| Revenue | $4.7B | $9.5B |
| Free cash flow | $284M | $2.3B |
| Net income | −$232M | $2.7B |
| Growth | ||
| Revenue growth | 6.2% | 2.3% |
| 5-year growth | 7.6% | 7.2% |
| Share count change | −0.2% | −2.4% |
| Profitability | ||
| Gross margin | 55.0% | 71.8% |
| Operating margin | — | — |
| Net margin | −4.9% | 28.2% |
| FCF margin | 6.0% | 24.1% |
| Return on capital | −0.1% | 29.3% |
| Return on equity | −3.7% | 66.0% |
| Balance sheet | ||
| Net debt | $3.5B | $6.7B |
| Net debt / EBITDA | 5.2x | 1.7x |
| Dividends and buybacks | $0.0M | $4.1B |
| Valuation & quality | ||
| P/E | — | 13.3x |
| Piotroski F-score | 6 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.