Alkermes plc (ALKS) vs Lantheus Holdings, Inc. (LNTH)

Alkermes plc and Lantheus Holdings, Inc. are both Drug Manufacturers Specialty & Generic companies. Alkermes plc is the larger, with a market value of $7.5B against $6.6B — 1.1× the size. Alkermes plc has negative trailing earnings, so its P/E is not meaningful; Lantheus Holdings, Inc. trades at 24.3×. Alkermes plc grew revenue faster over the last twelve months: 15.3% against 2.38%. Lantheus Holdings, Inc. has the higher net margin (17.3% vs −0.02%) and the higher return on invested capital (14.6% vs 1.54%). Across the 20 metrics below, Lantheus Holdings, Inc. leads on 16 and Alkermes plc on 4.

Valuation

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
P/E n/m 24.34 20.55
P/S 4.27 4.21 2.08
P/B 4.02 4.85 1.79
Price to free cash flow 32.78 16.89 16.29
EV/EBITDA 37.88 16.74 12.22
EV/Sales 4.69 4.14 2.87
Earnings yield 0.00% 4.11% (15.94%)
Free cash flow yield 3.05% 5.92% 0.00%

Profitability

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
Gross margin 82.89% 61.26% 53.51%
Operating margin 3.66% 18.62% 0.00%
Net margin (0.02%) 17.28% (2.45%)
Free cash flow margin 13.03% 26.21% 0.00%
Return on equity (0.02%) 21.81% (0.80%)
Return on assets (0.01%) 11.41% (1.67%)
Return on invested capital 1.54% 14.62% 0.00%

Growth

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 15.27% 2.38% 5.22%
EPS growth (last fiscal year) (34.10%) (21.79%) 42.91%
Revenue growth, 5-year CAGR 7.28% 35.35% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
Debt to equity 0.80 0.42 0.04
Current ratio 2.42 3.25 2.41
Net debt to EBITDA (4.69) 0.55 1.01

Dividend

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.45%
Payout ratio — — 0.27

Size

Metric ALKS LNTH Drug Manufacturers Specialty & Generic median
Market cap 7.48b 6.58b 315.39m

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