Ardelyx, Inc. (ARDX) vs Verastem, Inc. (VSTM)

Ardelyx, Inc. and Verastem, Inc. are both Biotechnology companies. Ardelyx, Inc. and Verastem, Inc. are of similar size ($835.9M and $814.9M). Verastem, Inc. grew revenue faster over the last twelve months: 472.9% against 16.8%. Ardelyx, Inc. has the higher net margin (−12.4% vs −231.6%) and the lower return on invested capital (−18.6% vs 0.00%). Across the 18 metrics below, Ardelyx, Inc. leads on 13 and Verastem, Inc. on 5.

Valuation

Metric ARDX VSTM Biotechnology median
P/E n/m n/m 8.50
P/S 1.70 9.89 9.71
P/B 5.14 17.32 2.13
Price to free cash flow n/m n/m 20.82
EV/EBITDA n/m n/m 0.64
EV/Sales 1.69 9.29 9.21
Earnings yield (7.25%) (28.44%) (33.15%)
Free cash flow yield (2.34%) (18.73%) (25.50%)

Profitability

Metric ARDX VSTM Biotechnology median
Gross margin 94.37% 86.35% 65.16%
Operating margin (7.86%) (182.57%) 0.00%
Net margin (12.35%) (231.59%) 0.00%
Free cash flow margin (3.97%) (185.31%) 0.00%
Return on equity (38.61%) (471.16%) (56.36%)
Return on assets (10.68%) (100.65%) (48.04%)
Return on invested capital (18.62%) 0.00% 0.00%

Growth

Metric ARDX VSTM Biotechnology median
Revenue growth (TTM) 16.77% 472.89% 6.02%
EPS growth (last fiscal year) (52.94%) 17.49% 30.26%
Revenue growth, 5-year CAGR 121.90% 12.11% 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARDX VSTM Biotechnology median
Debt to equity 1.69 1.48 0.00
Current ratio 3.34 2.25 4.72
Net debt to EBITDA 1.63 0.76 0.96

Dividend

Metric ARDX VSTM Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric ARDX VSTM Biotechnology median
Market cap 814.85m 835.90m 135.18m

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