Emergent Biosolutions Inc. (EBS) vs Ironwood Pharmaceuticals, Inc. (IRWD)

Emergent Biosolutions Inc. and Ironwood Pharmaceuticals, Inc. are both Drug Manufacturers Specialty & Generic companies. Ironwood Pharmaceuticals, Inc. is the larger, with a market value of $623.0M against $368.1M — 1.7× the size. Emergent Biosolutions Inc. has negative trailing earnings, so its P/E is not meaningful; Ironwood Pharmaceuticals, Inc. trades at 4.4×. Ironwood Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 26.2% against −9.56%. Ironwood Pharmaceuticals, Inc. has the higher net margin (33.4% vs −23.0%) and the higher return on invested capital (101.6% vs −5.27%). Across the 20 metrics below, Ironwood Pharmaceuticals, Inc. leads on 16 and Emergent Biosolutions Inc. on 4.

Valuation

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
P/E n/m 4.39 19.25
P/S 0.43 1.48 2.11
P/B 0.96 n/m 1.78
Price to free cash flow 3.82 3.10 16.14
EV/EBITDA 20.89 4.58 12.58
EV/Sales 1.00 2.78 2.73
Earnings yield (53.92%) 22.79% (4.38%)
Free cash flow yield 26.15% 32.24% 0.00%

Profitability

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
Gross margin 55.87% 100.00% 53.94%
Operating margin (8.57%) 60.15% 0.00%
Net margin (22.96%) 33.36% 0.00%
Free cash flow margin 11.18% 47.66% 0.00%
Return on equity (40.29%) (55.26%) (0.40%)
Return on assets (13.95%) 41.35% (3.32%)
Return on invested capital (5.27%) 101.61% 0.00%

Growth

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (9.56%) 26.19% 10.01%
EPS growth (last fiscal year) 125.83% 2,627.27% 49.06%
Revenue growth, 5-year CAGR (13.74%) (5.33%) 6.74%
Net income growth, 5-year CAGR (29.64%) (25.72%) 0.00%

Health

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
Debt to equity 1.70 (2.38) 0.05
Current ratio 5.42 6.06 2.31
Net debt to EBITDA 1.76 3.68 0.97

Dividend

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.57%
Payout ratio — — 0.27

Size

Metric EBS IRWD Drug Manufacturers Specialty & Generic median
Market cap 368.14m 622.95m 276.90m

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