Zoetis Inc. ZTS

Competitive advantage analysis · healthcare

Corporate Default
Overall moat score
85/100
Strong

About Zoetis Inc.

Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. The company commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and … Full ZTS analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 1.00), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 96.3th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
91

Where ZTS ranks in Drug Manufacturers - Specialty & Generic

Zoetis Inc. ranks #1 of 91 scored companies in Drug Manufacturers - Specialty & Generic by moat score — the top 1%. That makes it the widest moat in the group.

Moat scores for companies ranked near ZTS in Drug Manufacturers - Specialty & Generic
# Company Moat score Rating
1 Zoetis Inc. ZTS 85/100 Strong
2 Neurocrine Biosciences, Inc. NBIX 84/100 Strong
3 SIGA Technologies Inc. SIGA 79/100 Strong
4 Alkermes plc ALKS 77/100 Strong
5 Prestige Consumer Healthcare In PBH 76/100 Strong
6 Amphastar Pharmaceuticals, Inc. AMPH 75/100 Strong
7 Haleon plc HLN 75/100 Moderate
8 Kamada Ltd. KMDA 74/100 Moderate
9 Collegium Pharmaceutical, Inc. COLL 73/100 Moderate

See every Pharma / Mature Biotech company ranked by moat score →

How ZTS scores on the Corporate Default defenses

Pricing Power

Score 91 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 90 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 94 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 93 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 71 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 68 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ZTS's moat

What is Zoetis Inc.'s moat score?

Zoetis Inc. (ZTS) scores 85 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 91 scored companies in Drug Manufacturers - Specialty & Generic, the top 1%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 90 companies in Drug Manufacturers - Specialty & Generic. Its strongest defense is Customer Stickiness (94/100) and its weakest is Scale & Market Position (68/100).

How does Zoetis Inc. compare with other Drug Manufacturers - Specialty & Generic companies?

Zoetis Inc. ranks #1 of 91 scored companies in Drug Manufacturers - Specialty & Generic by moat score. That is the widest moat in Drug Manufacturers - Specialty & Generic. The companies ranked closest are Neurocrine Biosciences, Inc. (NBIX) at 84 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 90 companies in Drug Manufacturers - Specialty & Generic. The defenses are then weighted to produce the overall score out of 100.

Why is Zoetis Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Zoetis Inc.?

The Corporate Default template measures 6 defenses, and ZTS scores: Pricing Power (91), Cost Advantage (90), Customer Stickiness (94), Capital Efficiency (93), Resilience (71), Scale & Market Position (68). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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