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 $451.7M against $368.1M — 1.2× the size. Emergent Biosolutions Inc. has negative trailing earnings, so its P/E is not meaningful; Kamada Ltd. trades at 20.4×. Kamada Ltd. grew revenue faster over the last twelve months: 13.2% against −9.56%. Kamada Ltd. has the higher net margin (11.6% vs −23.0%) and the higher return on invested capital (8.47% vs −5.27%). Across the 21 metrics below, Kamada Ltd. leads on 13 and Emergent Biosolutions Inc. on 8.

Valuation

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
P/E n/m 20.45 19.25
P/S 0.43 2.34 2.11
P/B 0.96 1.67 1.78
Price to free cash flow 3.82 17.09 16.14
EV/EBITDA 20.89 9.19 12.58
EV/Sales 1.00 2.07 2.73
Earnings yield (53.92%) 4.89% (4.38%)
Free cash flow yield 26.15% 5.85% 0.00%

Profitability

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Gross margin 55.87% 40.82% 53.94%
Operating margin (8.57%) 14.51% 0.00%
Net margin (22.96%) 11.60% 0.00%
Free cash flow margin 11.18% 13.72% 0.00%
Return on equity (40.29%) 8.40% (0.40%)
Return on assets (13.95%) 5.92% (3.32%)
Return on invested capital (5.27%) 8.47% 0.00%

Growth

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) (9.56%) 13.17% 10.01%
EPS growth (last fiscal year) 125.83% 40.00% 49.06%
Revenue growth, 5-year CAGR (13.74%) 6.25% 6.74%
Net income growth, 5-year CAGR (29.64%) 3.34% 0.00%

Health

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Debt to equity 1.70 0.02 0.05
Current ratio 5.42 4.06 2.31
Net debt to EBITDA 1.76 (1.59) 0.97

Dividend

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Dividend yield — 5.41% 1.57%
Payout ratio — 1.11 0.27

Size

Metric EBS KMDA Drug Manufacturers Specialty & Generic median
Market cap 368.14m 451.71m 276.90m

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