IDEXX Laboratories Vs. Zoetis: A Pre-Earnings Comparison

Idexx Laboratories, Inc. and Zoetis Inc. are dominant players in animal health, but IDXX outperforms due to superior capital efficiency and recurring revenue flywheel. ZTS trades at a much lower valuation with solid margins and a dependable pipeline, but requires catalysts—like EPS beats or new approvals—for rerating in 2026. IDXX commands a premium valuation, driven by high ROIC (37–49%) and robust growth in diagnostics, notably its Cancer DX test and InVue DX instrument adoption.