Elanco Animal Health Incorporated (ELAN) vs Lantheus Holdings, Inc. (LNTH)

Elanco Animal Health Incorporated and Lantheus Holdings, Inc. are both Drug Manufacturers Specialty & Generic companies. Elanco Animal Health Incorporated is the larger, with a market value of $11.2B against $6.5B — 1.7× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Lantheus Holdings, Inc. trades at 23.7×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 2.35%. Lantheus Holdings, Inc. has the higher net margin (17.7% vs −3.96%) and the higher return on invested capital (14.7% vs 0.51%). Across the 20 metrics below, Lantheus Holdings, Inc. leads on 16 and Elanco Animal Health Incorporated on 4.

Valuation

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
P/E n/m 23.69 20.14
P/S 2.22 4.18 2.25
P/B 1.69 4.95 1.90
Price to free cash flow 31.22 16.54 16.54
EV/EBITDA 18.78 16.38 12.29
EV/Sales 2.89 4.16 2.56
Earnings yield (1.84%) 4.22% (2.99%)
Free cash flow yield 3.20% 6.04% 0.00%

Profitability

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 60.14% 53.94%
Operating margin 1.61% 19.43% 0.00%
Net margin (3.96%) 17.69% 0.00%
Free cash flow margin 7.55% 25.24% 0.00%
Return on equity (2.98%) 22.21% (0.40%)
Return on assets (1.46%) 12.15% (3.32%)
Return on invested capital 0.51% 14.65% 0.00%

Growth

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 2.35% 10.01%
EPS growth (last fiscal year) (169.12%) (21.79%) —
Revenue growth, 5-year CAGR 7.59% 35.35% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 0.44 0.05
Current ratio 2.05 3.06 2.31
Net debt to EBITDA 5.00 0.55 0.85

Dividend

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.70%
Payout ratio 0.00 0.00 0.00

Size

Metric ELAN LNTH Drug Manufacturers Specialty & Generic median
Market cap 11.21b 6.51b 337.35m

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