Cronos Group Inc. (CRON) vs Harrow, Inc. (HROW)

Cronos Group Inc. and Harrow, Inc. are both Drug Manufacturers Specialty & Generic companies. Cronos Group Inc. and Harrow, Inc. are of similar size ($1.2B and $1.2B). Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Cronos Group Inc. trades at 16.7×. Cronos Group Inc. grew revenue faster over the last twelve months: 37.5% against 21.1%. Cronos Group Inc. has the higher net margin (20.9% vs −13.5%) and the higher return on invested capital (−0.34% vs −0.77%). Across the 19 metrics below, Cronos Group Inc. leads on 14 and Harrow, Inc. on 5.

Valuation

Metric CRON HROW Drug Manufacturers Specialty & Generic median
P/E 16.70 n/m 20.14
P/S 6.97 4.48 2.25
P/B 1.12 83.21 1.90
Price to free cash flow 25.24 n/m 16.54
EV/EBITDA 36.04 67.46 12.29
EV/Sales 2.53 5.24 2.56
Earnings yield 5.99% (2.99%) (2.99%)
Free cash flow yield 3.96% (1.06%) 0.00%

Profitability

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Gross margin 45.86% 73.28% 53.94%
Operating margin (0.96%) (1.00%) 0.00%
Net margin 20.91% (13.51%) 0.00%
Free cash flow margin 27.61% (4.75%) 0.00%
Return on equity 3.33% (116.07%) (0.40%)
Return on assets 3.18% (9.77%) (3.32%)
Return on invested capital (0.34%) (0.77%) 0.00%

Growth

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 37.46% 21.05% 10.01%
EPS growth (last fiscal year) (118.18%) 71.43% —
Revenue growth, 5-year CAGR 25.70% 40.99% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Debt to equity 0.00 19.70 0.05
Current ratio 16.18 2.24 2.31
Net debt to EBITDA 337.10 3.14 0.85

Dividend

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

Size

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Market cap 1.22b 1.24b 337.35m

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