Critical Contrast: Quoin Pharmaceuticals (NASDAQ:QNRX) versus Zoetis (NYSE:ZTS)

Zoetis (NYSE:ZTS) and Quoin Pharmaceuticals (NASDAQ:QNRX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

92.8% of Zoetis shares are held by institutional investors. Comparatively, 8.6% of Quoin Pharmaceuticals shares are held by institutional investors. 0.2% of Zoetis shares are held by company insiders. Comparatively, 13.5% of Quoin Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Zoetis has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Quoin Pharmaceuticals has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Earnings & Valuation

This table compares Zoetis and Quoin Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoetis	$9.40 billion	5.67	$2.49 billion	$5.94	20.24
Quoin Pharmaceuticals	N/A	N/A	-$8.96 million	($31.73)	-0.28

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

Profitability

This table compares Zoetis and Quoin Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoetis	27.83%	56.90%	19.54%
Quoin Pharmaceuticals	N/A	-210.50%	-99.41%

Analyst Recommendations

This is a summary of current ratings for Zoetis and Quoin Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	0	5	5	0	2.50
Quoin Pharmaceuticals	1	0	0	0	1.00

Zoetis presently has a consensus target price of $191.00, suggesting a potential upside of 58.90%. Given Zoetis’ stronger consensus rating and higher probable upside, research analysts plainly believe Zoetis is more favorable than Quoin Pharmaceuticals.

Summary

Zoetis beats Quoin Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

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.

About Quoin Pharmaceuticals

Quoin Pharmaceuticals, Ltd., a clinical stage specialty pharmaceutical company, focuses on the development and commercialization of therapeutic products for rare and orphan diseases. Its lead product is QRX003, a topical lotion to treat Netherton Syndrome (NS). The company is also developing QRX004 for the treatment of recessive dystrophic epidermolysis bullosa; QRX007 to treat NS; and QRX008 for the treatment of scleroderma. It has a research agreement with Queensland University of Technology; a license agreement with Skinvisible Inc.; consulting agreements with Axella Research LLC; and a Master Service Agreement with Therapeutics Inc. The company was founded in 2018 and is based in Ashburn, Virginia.