The heightened rate of pet adoption during the COVID-19 pandemic has increased the sale of pet food, medication, and diagnostic devices over the past year. This trend is likely to continue as most businesses move to a hybrid work schedule permanently, given its benefits, and people continue to adopt new pets. This makes well-known pet companies IDEXX Laboratories (IDXX) and Zomedica (ZOM) well-positioned to deliver solid returns in the coming months. But let’s find out which of these stocks is a better buy now.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 a line of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market. Its products and services include point-of-care veterinary diagnostic products that comprise instruments, consumables and rapid assay test kits.
Zomedica Corporation (ZOM) is a development stage veterinary diagnostics and pharmaceutical company that focuses on the discovery, development, and commercialization of drugs, devices, and diagnostics for the health and wellness of companion animals.
A heightened interest in adopting pets amid the pandemic drove the pet industry to all-time high sales of $103.60 billion in 2020, up 6.7% year-over-year, according to the American Pet Products Association. Consequently, animal health check-ups have led to an increase in the sale of pet medications and diagnostic devices over the past year, along with a rise in pet food and supplies. Furthermore, companies in this space are making innovative pet-friendly products and efficient diagnostic products to capitalize on growing demand.