The heightened adoption of pets and spending on their medications and vaccines should allow companies in the animal health care business to grow significantly. So, popular companies in this space, Phibro (PAHC) and Jaguar (JAGX), should benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.Phibro Animal Health Corporation (NASDAQ:PAHC) in Teaneck, N.J., and Jaguar Health, Inc. (JAGX) in San Francisco, are two budding players in the animal healthcare industry. PAHC offers antibacterials, anticoccidials, anthelmintics, vaccines, and mineral nutritional products for the treatment of food animals, including poultry, swine, beef and dairy cattle, and aquaculture. In comparison, JAGX operates as a natural-products pharmaceutical company that is engaged in the development and commercialization of gastrointestinal prescription products for humans and n animals worldwide.
A surge in pet adoption and expenditures on their food and medications drove the U.S. pet industry to $103.6 billion in net sales in 2020. This rising demand for advanced vaccines and drugs to prevent the spread of air and food-borne diseases in animals has incentivized companies to upgrade their product portfolios and gain expanded market reach. The global animal health market is expected to grow at 9% CAGR to reach $88.67 billion by 2028. So, both PAHC and JAGX should benefit from the industry tailwinds.
But, while JAGX has lost 13% in price over the past month, PAHC has advanced in price marginally. And in terms of their past six months’ performance, PAHC is a clear winner with 7.8% gains versus JAGX’s negative returns. But, which of these stocks is a better pick now? Let’s find out.