Alkermes plc (ALKS) vs Neurocrine Biosciences, Inc. (NBIX)

Alkermes plc and Neurocrine Biosciences, Inc. are both Drug Manufacturers Specialty & Generic companies. Neurocrine Biosciences, Inc. is the larger, with a market value of $16.2B against $7.5B — 2.2× the size. Alkermes plc has negative trailing earnings, so its P/E is not meaningful; Neurocrine Biosciences, Inc. trades at 23.0×. Neurocrine Biosciences, Inc. grew revenue faster over the last twelve months: 38.0% against 15.3%. Neurocrine Biosciences, Inc. has the higher net margin (19.0% vs −0.02%) and the higher return on invested capital (17.7% vs 1.54%). Across the 21 metrics below, Neurocrine Biosciences, Inc. leads on 17 and Alkermes plc on 4.

Valuation

Metric ALKS NBIX Drug Manufacturers Specialty & Generic median
P/E n/m 23.01 20.55
P/S 4.27 4.40 2.08
P/B 4.02 4.20 1.79
Price to free cash flow 32.78 15.68 16.29
EV/EBITDA 37.88 16.51 12.22
EV/Sales 4.69 4.35 2.87
Earnings yield 0.00% 4.35% (15.94%)
Free cash flow yield 3.05% 6.38% 0.00%

Profitability

Metric ALKS NBIX Drug Manufacturers Specialty & Generic median
Gross margin 82.89% 97.75% 53.51%
Operating margin 3.66% 23.96% 0.00%
Net margin (0.02%) 18.98% (2.45%)
Free cash flow margin 13.03% 28.09% 0.00%
Return on equity (0.02%) 20.41% (0.80%)
Return on assets (0.01%) 14.20% (1.67%)
Return on invested capital 1.54% 17.65% 0.00%

Growth

Metric ALKS NBIX Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 15.27% 37.98% 5.22%
EPS growth (last fiscal year) (34.10%) 41.95% 42.91%
Revenue growth, 5-year CAGR 7.28% 22.29% 7.24%
Net income growth, 5-year CAGR 0.00% 3.28% 0.00%

Health

Metric ALKS NBIX Drug Manufacturers Specialty & Generic median
Debt to equity 0.80 0.00 0.04
Current ratio 2.42 2.04 2.41
Net debt to EBITDA (4.69) (2.33) 1.01

Dividend

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

Size

Metric ALKS NBIX Drug Manufacturers Specialty & Generic median
Market cap 7.48b 16.17b 315.39m

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