Amphastar Pharmaceuticals, Inc. (AMPH) vs Harrow, Inc. (HROW)

Amphastar Pharmaceuticals, Inc. and Harrow, Inc. are both Drug Manufacturers Specialty & Generic companies. Harrow, Inc. is the larger, with a market value of $1.2B against $1.1B — 1.1× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Amphastar Pharmaceuticals, Inc. trades at 15.0×. Harrow, Inc. grew revenue faster over the last twelve months: 21.1% against 1.02%. Amphastar Pharmaceuticals, Inc. has the higher net margin (10.8% vs −13.5%) and the higher return on invested capital (6.57% vs −0.77%). Across the 20 metrics below, Amphastar Pharmaceuticals, Inc. leads on 16 and Harrow, Inc. on 4.

Valuation

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
P/E 15.01 n/m 20.14
P/S 1.56 4.48 2.25
P/B 1.48 83.21 1.90
Price to free cash flow 7.58 n/m 16.54
EV/EBITDA 8.35 67.46 12.29
EV/Sales 2.00 5.24 2.56
Earnings yield 6.66% (2.99%) (2.99%)
Free cash flow yield 13.20% (1.06%) 0.00%

Profitability

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
Gross margin 47.68% 73.28% 53.94%
Operating margin 15.66% (1.00%) 0.00%
Net margin 10.76% (13.51%) 0.00%
Free cash flow margin 20.94% (4.75%) 0.00%
Return on equity 10.30% (116.07%) (0.40%)
Return on assets 4.68% (9.77%) (3.32%)
Return on invested capital 6.57% (0.77%) 0.00%

Growth

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 1.02% 21.05% 10.01%
EPS growth (last fiscal year) (33.66%) 71.43% —
Revenue growth, 5-year CAGR 15.53% 40.99% 6.74%
Net income growth, 5-year CAGR 133.84% 0.00% 0.00%

Health

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
Debt to equity 0.80 19.70 0.05
Current ratio 2.40 2.24 2.31
Net debt to EBITDA 1.62 3.14 0.85

Dividend

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.70%
Payout ratio 0.00 0.00 0.00

Size

Metric AMPH HROW Drug Manufacturers Specialty & Generic median
Market cap 1.12b 1.24b 337.35m

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