The remote lifestyle forced by the COVID-19 pandemic boosted pet ownership over the past year. As a result, the pet industry has been faced with huge demand for pet food and medications. In response to this, pet companies are racing to develop quality food products and viable drugs and diagnostic products. We think these factors should help popular pet companies IDEXX Laboratories (IDXX) and Elanco (ELAN) deliver solid returns in the coming months. But let’s find out which of these stocks is a better buy now. Read on.IDEXX Laboratories, Inc. (IDXX) develops, manufactures and distributes products and provides services for the companion animal, veterinary, livestock and poultry, dairy and water testing markets worldwide. The company also sells portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.
Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health care company that develops, manufactures, and markets products for companion and food animals. The company sells its products to third-party distributors, veterinarians, farm animal producers, and dairy farmers, and provides aquaculture operations.
The heightened adoption of companion animals during the pandemic and huge spending on pet food, toys, grooming and veterinary care allowed the U.S. pet industry to generate $103.60 billion in sale in 2020, which represents a 6.7% year-over-year improvement. The American Pet Products Association estimates the pet industry will generate $109.60 billion in sales this year. Also, rising investor optimism surrounding the industry is evident in the ProShares Pet Care ETF’s (PAWZ) 62.4% gains over the past year compared to the SPDR S&P 500 Trust ETF’s (SPY) 33.1% gains.