Cassava Sciences (NASDAQ:SAVA) & Zoetis (NYSE:ZTS) Head-To-Head Comparison

Zoetis (NYSE:ZTS) and Cassava Sciences (NASDAQ:SAVA) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Volatility & Risk

Zoetis has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Cassava Sciences has a beta of -1, meaning that its share price is 200% less volatile than the S&P 500.

Profitability

This table compares Zoetis and Cassava Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoetis	28.21%	57.19%	19.53%
Cassava Sciences	N/A	-63.39%	-49.81%

Institutional and Insider Ownership

92.8% of Zoetis shares are owned by institutional investors. Comparatively, 38.1% of Cassava Sciences shares are owned by institutional investors. 0.2% of Zoetis shares are owned by company insiders. Comparatively, 2.4% of Cassava Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Zoetis and Cassava Sciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoetis	$9.26 billion	5.99	$2.49 billion	$5.94	21.18
Cassava Sciences	N/A	N/A	-$24.34 million	($2.19)	-0.90

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zoetis and Cassava Sciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoetis	1	7	6	0	2.36
Cassava Sciences	1	1	0	0	1.50

Zoetis presently has a consensus price target of $160.18, indicating a potential upside of 27.31%. Cassava Sciences has a consensus price target of $2.00, indicating a potential upside of 1.01%. Given Zoetis’ stronger consensus rating and higher probable upside, research analysts clearly believe Zoetis is more favorable than Cassava Sciences.

Summary

Zoetis beats Cassava Sciences on 12 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 Cassava Sciences

Cassava Sciences, Inc., a clinical stage biotechnology company, develops drugs for neurodegenerative diseases. Its lead therapeutic product candidate is simufilam, a small molecule drug, which is completed Phase 2 clinical trial; and investigational diagnostic product candidate is SavaDx, a blood-based biomarker/diagnostic to detect Alzheimer's disease. The company was formerly known as Pain Therapeutics, Inc. and changed its name to Cassava Sciences, Inc. in March 2019. Cassava Sciences, Inc. was incorporated in 1998 and is based in Austin, Texas.