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 $2.4B against $1.4B — 1.7× the size. Xeris Biopharma Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Cronos Group Inc. trades at 21.9×. Cronos Group Inc. grew revenue faster over the last twelve months: 55.8% against 38.4%. Cronos Group Inc. has the higher net margin (28.0% vs −1.76%) and the lower return on invested capital (1.28% vs 27.2%). Across the 20 metrics below, Cronos Group Inc. leads on 13 and Xeris Biopharma Holdings, Inc. on 7.

Valuation

Metric CRON XERS Drug Manufacturers Specialty & Generic median
P/E 21.88 n/m 20.55
P/S 6.65 6.36 2.08
P/B 1.22 48.03 1.79
Price to free cash flow 21.09 32.23 16.29
EV/EBITDA 26.94 46.61 12.22
EV/Sales 3.04 6.70 2.87
Earnings yield 4.57% (0.31%) (15.94%)
Free cash flow yield 4.74% 3.10% 0.00%

Profitability

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Gross margin 46.59% 87.38% 53.51%
Operating margin 3.78% 12.70% 0.00%
Net margin 28.04% (1.76%) (2.45%)
Free cash flow margin 31.71% 20.00% 0.00%
Return on equity 5.12% (27.11%) (0.80%)
Return on assets 4.87% (1.64%) (1.67%)
Return on invested capital 1.28% 27.22% 0.00%

Growth

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 55.79% 38.37% 5.22%
EPS growth (last fiscal year) (118.18%) 100.86% 42.91%
Revenue growth, 5-year CAGR 25.70% 70.20% 7.24%
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 3.89 0.04
Current ratio 12.71 2.15 2.41
Net debt to EBITDA 337.10 2.67 1.01

Dividend

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.45%
Payout ratio — — 0.27

Size

Metric CRON XERS Drug Manufacturers Specialty & Generic median
Market cap 1.37b 2.38b 315.39m

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