Alkermes plc (ALKS) vs Liquidia Corporation (LQDA)

Alkermes plc and Liquidia Corporation are both Drug Manufacturers Specialty & Generic companies. Alkermes plc is the larger, with a market value of $7.5B against $4.0B — 1.9× the size. Alkermes plc has negative trailing earnings, so its P/E is not meaningful; Liquidia Corporation trades at 28.5×. Liquidia Corporation grew revenue faster over the last twelve months: 2,233.7% against 15.3%. Liquidia Corporation has the higher net margin (30.7% vs −0.02%) and the higher return on invested capital (121.1% vs 1.54%). Across the 20 metrics below, Liquidia Corporation leads on 14 and Alkermes plc on 6.

Valuation

Metric ALKS LQDA Drug Manufacturers Specialty & Generic median
P/E n/m 28.47 20.55
P/S 4.27 8.81 2.08
P/B 4.02 20.36 1.79
Price to free cash flow 32.78 26.36 16.29
EV/EBITDA 37.88 22.70 12.22
EV/Sales 4.69 8.57 2.87
Earnings yield 0.00% 3.51% (15.94%)
Free cash flow yield 3.05% 3.79% 0.00%

Profitability

Metric ALKS LQDA Drug Manufacturers Specialty & Generic median
Gross margin 82.89% 92.54% 53.51%
Operating margin 3.66% 37.39% 0.00%
Net margin (0.02%) 30.74% (2.45%)
Free cash flow margin 13.03% 33.42% 0.00%
Return on equity (0.02%) 131.82% (0.80%)
Return on assets (0.01%) 35.57% (1.67%)
Return on invested capital 1.54% 121.05% 0.00%

Growth

Metric ALKS LQDA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 15.27% 2,233.65% 5.22%
EPS growth (last fiscal year) (34.10%) 51.81% 42.91%
Revenue growth, 5-year CAGR 7.28% 192.49% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALKS LQDA Drug Manufacturers Specialty & Generic median
Debt to equity 0.80 0.90 0.04
Current ratio 2.42 2.31 2.41
Net debt to EBITDA (4.69) (0.01) 1.01

Dividend

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

Size

Metric ALKS LQDA Drug Manufacturers Specialty & Generic median
Market cap 7.48b 3.98b 315.39m

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