Teva Pharmaceuticals vs Zoetis
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KIRA’s take AI analyst
I put Teva Pharmaceuticals and Zoetis side by side, using each one’s latest annual report. Here is what stands out:
- Teva Pharmaceuticals is the larger business, with $17.3B of revenue in fiscal 2025 against $9.5B for Zoetis, about 1.8 times as much.
- Teva Pharmaceuticals grew revenue faster (4.3%, against 2.3%).
- Zoetis turned more of its sales into free cash flow (24.1% FCF margin, against 6.7%).
- Zoetis earned a higher return on the capital invested in it (29.3%, against 10.5%).
- Investors pay more for each dollar of Teva Pharmaceuticals’s earnings: a P/E of 66.6x against 13.3x for Zoetis.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Teva Pharmaceuticals
TEVA
1/10
Revenue growth
Zoetis
ZTS
8/10
5-year growthGross marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | TEVA FY25 | ZTS FY25 |
|---|---|---|
| Size | ||
| Market cap | $46.5B | $33.8B |
| Revenue | $17.3B | $9.5B |
| Free cash flow | $1.1B | $2.3B |
| Net income | $1.4B | $2.7B |
| Growth | ||
| Revenue growth | 4.3% | 2.3% |
| 5-year growth | 0.7% | 7.2% |
| Share count change | 2.8% | −2.4% |
| Profitability | ||
| Gross margin | 51.8% | 71.8% |
| Operating margin | 12.5% | — |
| Net margin | 8.2% | 28.2% |
| FCF margin | 6.7% | 24.1% |
| Return on capital | 10.5% | 29.3% |
| Return on equity | 21.2% | 66.0% |
| Balance sheet | ||
| Net debt | $13.3B | $6.7B |
| Net debt / EBITDA | 4.2x | 1.7x |
| Dividends and buybacks | $0.0M | $4.1B |
| Valuation & quality | ||
| P/E | 66.6x | 13.3x |
| Piotroski F-score | 8 | 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.

