Alkermes plc (ALKS) vs Hims & Hers Health, Inc. (HIMS)

Alkermes plc and Hims & Hers Health, Inc. are both Drug Manufacturers Specialty & Generic companies. Alkermes plc and Hims & Hers Health, Inc. are of similar size ($6.9B and $6.7B). Hims & Hers Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Alkermes plc trades at 102×. Hims & Hers Health, Inc. grew revenue faster over the last twelve months: 28.0% against 10.8%. Alkermes plc has the higher net margin (3.97% vs −5.51%) and the higher return on invested capital (2.76% vs −11.4%). Across the 19 metrics below, Alkermes plc leads on 14 and Hims & Hers Health, Inc. on 5.

Valuation

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
P/E 102.28 n/m 19.25
P/S 4.13 2.52 2.11
P/B 3.81 20.07 1.78
Price to free cash flow 30.91 78.35 16.14
EV/EBITDA 34.73 n/m 12.58
EV/Sales 4.64 2.73 2.73
Earnings yield 0.98% (2.17%) (4.38%)
Free cash flow yield 3.23% 1.28% 0.00%

Profitability

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
Gross margin 84.56% 68.43% 53.94%
Operating margin 7.03% (5.99%) 0.00%
Net margin 3.97% (5.51%) 0.00%
Free cash flow margin 13.35% 3.22% 0.00%
Return on equity 3.85% (32.03%) (0.40%)
Return on assets 1.99% (5.16%) (3.32%)
Return on invested capital 2.76% (11.38%) 0.00%

Growth

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 10.79% 28.04% 10.01%
EPS growth (last fiscal year) (34.10%) (3.77%) 49.06%
Revenue growth, 5-year CAGR 7.28% 73.63% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
Debt to equity 0.83 4.21 0.05
Current ratio 2.30 0.93 2.31
Net debt to EBITDA (4.69) 2.43 0.97

Dividend

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.57%
Payout ratio — — 0.27

Size

Metric ALKS HIMS Drug Manufacturers Specialty & Generic median
Market cap 6.73b 6.85b 276.90m

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