Emergent Biosolutions Inc. (EBS) vs Kamada Ltd. (KMDA)

Emergent Biosolutions Inc. and Kamada Ltd. are both Drug Manufacturers Specialty & Generic companies. Kamada Ltd. is the larger, with a market value of $396.3M against $300.8M — 1.3× the size. Emergent Biosolutions Inc. has negative trailing earnings, so its P/E is not meaningful; Kamada Ltd. trades at 18.1×. Kamada Ltd. grew revenue faster over the last twelve months: 13.2% against −17.7%. Kamada Ltd. has the higher net margin (11.6% vs −40.2%) and the higher return on invested capital (8.47% vs −17.5%). Across the 20 metrics below, Kamada Ltd. leads on 11 and Emergent Biosolutions Inc. on 9.

Valuation

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
P/E n/m 18.13 20.55
P/S 0.47 2.08 2.08
P/B 0.97 1.48 1.79
Price to free cash flow 1.57 15.16 16.29
EV/EBITDA n/m 8.01 12.22
EV/Sales 0.98 1.80 2.87
Earnings yield (85.09%) 5.52% (15.94%)
Free cash flow yield 63.88% 6.60% 0.00%

Profitability

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Gross margin 48.42% 40.82% 53.51%
Operating margin (27.70%) 14.51% 0.00%
Net margin (40.16%) 11.60% (2.45%)
Free cash flow margin 29.89% 13.72% 0.00%
Return on equity (58.21%) 8.40% (0.80%)
Return on assets (21.23%) 5.92% (1.67%)
Return on invested capital (17.45%) 8.47% 0.00%

Growth

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (17.72%) 13.17% 5.22%
EPS growth (last fiscal year) 125.83% 40.00% 42.91%
Revenue growth, 5-year CAGR (13.74%) 6.25% 7.24%
Net income growth, 5-year CAGR (29.64%) 3.34% 0.00%

Health

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Debt to equity 1.62 0.02 0.04
Current ratio 4.58 4.06 2.41
Net debt to EBITDA 1.76 (1.59) 1.01

Dividend

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Dividend yield — 6.10% 1.45%
Payout ratio — 1.11 0.27

Size

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Market cap 300.78m 396.33m 315.39m

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