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Zoetis vs. Freshpet: Which Pet Stock is a Better Buy?

Zoetis vs. Freshpet: Which Pet Stock is a Better Buy?

A significant rise in pet adoption since last year has driven the pet care industry substantially. This trend is expected to continue given the resurgence of the COVID-19 cases, enabling pet stocks Zoetis Inc . (NYSE:ZTS) and Freshpet, Inc. (NASDAQ:FRPT) to benefit. But which of these stocks is a better buy now? Read more to find out.Zoetis Inc. (ZTS) investigates, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock and companion animals. On the other hand, Freshpet, Inc. (FRPT) manufactures and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and the United Kingdom. The company sells its products under the Freshpet brand; and Dognation and Dog Joy labels.

Pet adoption has increased significantly since last year due to the remote lifestyle. In April 2020, the national pet adoption rate jumped 34% year-over-year with the stay-at-home orders and the pandemic taking shape. As a result, the pet care market has grown substantially over the past 19 months, with surging demand for food, pet grooming products, and related products. The pet care market is projected to grow at a CAGR of 5.2% over the next six years to reach $255.40 billion in 2027. The industry’s growth should benefit both ZTS and FRPT.

ZTS has gained 28% over the past six months, while FRPT has slumped 14% over the period. Also, ZTS’ 23.2% gains year-to-date compares with FRPT’s loss of 3.5%. In terms of past year performance, FRPT is the clear winner with 32.8% gains versus ZTS’s 29.2%.

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