Alkermes plc (ALKS) vs Elanco Animal Health Incorporated (ELAN)

Alkermes plc and Elanco Animal Health Incorporated are both Drug Manufacturers Specialty & Generic companies. Elanco Animal Health Incorporated is the larger, with a market value of $11.2B against $6.8B — 1.7× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Alkermes plc trades at 101×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 10.8%. Alkermes plc has the higher net margin (3.97% vs −3.96%) and the higher return on invested capital (2.76% vs 0.51%). Across the 20 metrics below, Alkermes plc leads on 13 and Elanco Animal Health Incorporated on 7.

Valuation

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
P/E 101.36 n/m 20.14
P/S 4.09 2.22 2.25
P/B 3.77 1.69 1.90
Price to free cash flow 30.64 31.22 16.54
EV/EBITDA 34.45 18.78 12.29
EV/Sales 4.60 2.89 2.56
Earnings yield 0.99% (1.84%) (2.99%)
Free cash flow yield 3.26% 3.20% 0.00%

Profitability

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
Gross margin 84.56% 55.36% 53.94%
Operating margin 7.03% 1.61% 0.00%
Net margin 3.97% (3.96%) 0.00%
Free cash flow margin 13.35% 7.55% 0.00%
Return on equity 3.85% (2.98%) (0.40%)
Return on assets 1.99% (1.46%) (3.32%)
Return on invested capital 2.76% 0.51% 0.00%

Growth

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 10.79% 11.95% 10.01%
EPS growth (last fiscal year) (34.10%) (169.12%) —
Revenue growth, 5-year CAGR 7.28% 7.59% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
Debt to equity 0.83 0.59 0.05
Current ratio 2.30 2.05 2.31
Net debt to EBITDA (4.69) 5.00 0.85

Dividend

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.70%
Payout ratio 0.00 0.00 0.00

Size

Metric ALKS ELAN Drug Manufacturers Specialty & Generic median
Market cap 6.78b 11.21b 337.35m

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