Canopy Growth Corporation (CGC) vs Kamada Ltd. (KMDA)

Canopy Growth Corporation and Kamada Ltd. are both Drug Manufacturers Specialty & Generic companies. Kamada Ltd. is the larger, with a market value of $451.7M against $311.2M — 1.5× the size. Canopy Growth Corporation has negative trailing earnings, so its P/E is not meaningful; Kamada Ltd. trades at 20.4×. Kamada Ltd. grew revenue faster over the last twelve months: 13.2% against 7.80%. Kamada Ltd. has the higher net margin (11.6% vs −80.4%) and the higher return on invested capital (8.47% vs −17.2%). Across the 19 metrics below, Kamada Ltd. leads on 15 and Canopy Growth Corporation on 4.

Valuation

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
P/E n/m 20.45 19.25
P/S 1.41 2.34 2.11
P/B 0.60 1.67 1.78
Price to free cash flow n/m 17.09 16.14
EV/EBITDA n/m 9.19 12.58
EV/Sales 1.07 2.07 2.73
Earnings yield (62.58%) 4.89% (4.38%)
Free cash flow yield (20.24%) 5.85% 0.00%

Profitability

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Gross margin 25.16% 40.82% 53.94%
Operating margin (54.89%) 14.51% 0.00%
Net margin (80.39%) 11.60% 0.00%
Free cash flow margin (28.34%) 13.72% 0.00%
Return on equity (40.14%) 8.40% (0.40%)
Return on assets (23.54%) 5.92% (3.32%)
Return on invested capital (17.19%) 8.47% 0.00%

Growth

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 7.80% 13.17% 10.01%
EPS growth (last fiscal year) 84.00% 40.00% 49.06%
Revenue growth, 5-year CAGR (13.04%) 6.25% 6.74%
Net income growth, 5-year CAGR 0.00% 3.34% 0.00%

Health

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Debt to equity 0.35 0.02 0.05
Current ratio 3.04 4.06 2.31
Net debt to EBITDA 1.09 (1.59) 0.97

Dividend

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Dividend yield — 5.41% 1.57%
Payout ratio — 1.11 0.27

Size

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Market cap 311.15m 451.71m 276.90m

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