Wall Street is often willing to pay extra to sleep better at night, and Zoetis (NYSE: ZTS )
is the sort of business that won't often lead investors to lose much
sleep. The largest player in animal health, Zoetis is in the top three
in every relevant sub-market it addresses and is often #1 or #2, but its
leading product is less than 10% of sales and the top 10 list of
products is less than 40% of revenue. Helping Zoetis' valuation even
further is the relative lack of alternatives – companies like Neogen, Virbac, and Dechra
are much, much smaller (and harder to own for larger funds), while the
big comparables remain locked within large pharmaceutical companies like
Merck (NYSE: MRK ) , Sanofi (NYSE: SNY ) , and Lilly (NYSE: LLY ) .
Read more here:
3 Reasons to Like Zoetis
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