Alector, Inc. (ALEC) vs Enanta Pharmaceuticals, Inc. (ENTA)

Alector, Inc. and Enanta Pharmaceuticals, Inc. are both Biotechnology companies. Alector, Inc. and Enanta Pharmaceuticals, Inc. are of similar size ($309.9M and $293.6M). Enanta Pharmaceuticals, Inc. has negative trailing earnings, so its P/E is not meaningful; Alector, Inc. trades at 6.6×. Alector, Inc. grew revenue faster over the last twelve months: 151.2% against 0.70%. Alector, Inc. has the higher net margin (23.9% vs −96.9%) and the higher return on invested capital (0.00% vs 0.00%). Across the 15 metrics below, Alector, Inc. leads on 12 and Enanta Pharmaceuticals, Inc. on 3.

Valuation

Metric ALEC ENTA Biotechnology median
P/E 6.57 n/m 10.60
P/S 1.49 4.90 9.40
P/B 2.22 3.17 2.13
Price to free cash flow n/m n/m 25.18
EV/EBITDA n/m n/m 0.66
EV/Sales 0.80 2.00 9.02
Earnings yield 15.22% (21.91%) (32.88%)
Free cash flow yield (58.00%) (11.54%) (23.13%)

Profitability

Metric ALEC ENTA Biotechnology median
Gross margin 100.00% 100.00% 68.51%
Operating margin 20.16% (89.99%) 0.00%
Net margin 23.87% (96.89%) 0.00%
Free cash flow margin (86.40%) (56.60%) 0.00%
Return on equity 47.52% (70.12%) (51.96%)
Return on assets 16.53% (21.15%) (46.06%)
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric ALEC ENTA Biotechnology median
Revenue growth (TTM) 151.23% 0.70% 6.76%
EPS growth (last fiscal year) (13.01%) 29.93% 29.88%
Revenue growth, 5-year CAGR (0.05%) (11.81%) 9.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALEC ENTA Biotechnology median
Debt to equity 0.00 0.00 0.00
Current ratio 4.10 3.76 4.97
Net debt to EBITDA 1.61 2.35 1.01

Dividend

Metric ALEC ENTA Biotechnology median
Dividend yield — — 0.41%
Payout ratio — — —

Size

Metric ALEC ENTA Biotechnology median
Market cap 309.86m 293.59m 161.82m

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