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 $1.1B). Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Cronos Group Inc. trades at 16.1×. 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 16.10 n/m 19.25
P/S 6.72 3.70 2.11
P/B 1.08 68.64 1.78
Price to free cash flow 24.33 n/m 16.14
EV/EBITDA 32.41 57.50 12.58
EV/Sales 2.27 4.47 2.73
Earnings yield 6.21% (3.63%) (4.38%)
Free cash flow yield 4.11% (1.28%) 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% 49.06%
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 0.97

Dividend

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.57%
Payout ratio — — 0.27

Size

Metric CRON HROW Drug Manufacturers Specialty & Generic median
Market cap 1.18b 1.08b 276.90m

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