Cronos Group Inc. (CRON) vs Xeris Biopharma Holdings, Inc. (XERS)

Cronos Group Inc. and Xeris Biopharma Holdings, Inc. are both Drug Manufacturers Specialty & Generic companies. Xeris Biopharma Holdings, Inc. is the larger, with a market value of $1.6B against $1.2B — 1.3× the size. Xeris Biopharma Holdings, 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 36.3%. Cronos Group Inc. has the higher net margin (20.9% vs −5.12%) and the lower return on invested capital (−0.34% vs 18.9%). Across the 19 metrics below, Xeris Biopharma Holdings, Inc. leads on 10 and Cronos Group Inc. on 9.

Valuation

Metric CRON XERS Drug Manufacturers Specialty & Generic median
P/E 16.70 n/m 20.14
P/S 6.97 4.69 2.25
P/B 1.12 n/m 1.90
Price to free cash flow 25.24 28.25 16.54
EV/EBITDA 36.04 32.20 12.29
EV/Sales 2.53 5.08 2.56
Earnings yield 5.99% (1.06%) (2.99%)
Free cash flow yield 3.96% 3.54% 0.00%

Profitability

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Gross margin 45.86% 86.58% 53.94%
Operating margin (0.96%) 10.91% 0.00%
Net margin 20.91% (5.12%) 0.00%
Free cash flow margin 27.61% 16.60% 0.00%
Return on equity 3.33% 118.22% (0.40%)
Return on assets 3.18% (4.60%) (3.32%)
Return on invested capital (0.34%) 18.88% 0.00%

Growth

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 37.46% 36.33% 10.01%
EPS growth (last fiscal year) (118.18%) 100.86% —
Revenue growth, 5-year CAGR 25.70% 70.20% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Debt to equity 0.00 (25.95) 0.05
Current ratio 16.18 1.45 2.31
Net debt to EBITDA 337.10 2.67 0.85

Dividend

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

Size

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Market cap 1.22b 1.63b 337.35m

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