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 $509.4M against $397.7M — 1.3× the size. Canopy Growth Corporation has negative trailing earnings, so its P/E is not meaningful; Kamada Ltd. trades at 22.9×. 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 22.95 20.14
P/S 1.87 2.63 2.25
P/B 0.80 1.87 1.90
Price to free cash flow n/m 19.18 16.54
EV/EBITDA n/m 10.33 12.29
EV/Sales 1.52 2.32 2.56
Earnings yield (47.27%) 4.36% (2.99%)
Free cash flow yield (15.29%) 5.21% 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% —
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) 0.85

Dividend

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.70%
Payout ratio 0.00 0.00 0.00

Size

Metric CGC KMDA Drug Manufacturers Specialty & Generic median
Market cap 397.66m 509.40m 337.35m

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