Elanco Animal Health Incorporated (ELAN) vs Neurocrine Biosciences, Inc. (NBIX)

Elanco Animal Health Incorporated and Neurocrine Biosciences, Inc. are both Drug Manufacturers Specialty & Generic companies. Neurocrine Biosciences, Inc. is the larger, with a market value of $14.1B against $11.2B — 1.3× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; Neurocrine Biosciences, Inc. trades at 19.6×. Neurocrine Biosciences, Inc. grew revenue faster over the last twelve months: 34.4% against 12.0%. Neurocrine Biosciences, Inc. has the higher net margin (20.9% vs −3.96%) and the higher return on invested capital (15.0% vs 0.51%). Across the 21 metrics below, Neurocrine Biosciences, Inc. leads on 17 and Elanco Animal Health Incorporated on 4.

Valuation

Metric ELAN NBIX Drug Manufacturers Specialty & Generic median
P/E n/m 19.63 20.14
P/S 2.22 4.14 2.25
P/B 1.69 3.78 1.90
Price to free cash flow 31.22 16.06 16.54
EV/EBITDA 18.78 16.65 12.29
EV/Sales 2.89 4.11 2.56
Earnings yield (1.84%) 5.09% (2.99%)
Free cash flow yield 3.20% 6.23% 0.00%

Profitability

Metric ELAN NBIX Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 97.94% 53.94%
Operating margin 1.61% 23.56% 0.00%
Net margin (3.96%) 20.91% 0.00%
Free cash flow margin 7.55% 25.80% 0.00%
Return on equity (2.98%) 22.09% (0.40%)
Return on assets (1.46%) 15.26% (3.32%)
Return on invested capital 0.51% 15.04% 0.00%

Growth

Metric ELAN NBIX Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 34.42% 10.01%
EPS growth (last fiscal year) (169.12%) 41.95% —
Revenue growth, 5-year CAGR 7.59% 22.29% 6.74%
Net income growth, 5-year CAGR 0.00% 3.28% 0.00%

Health

Metric ELAN NBIX Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 0.00 0.05
Current ratio 2.05 1.87 2.31
Net debt to EBITDA 5.00 (2.33) 0.85

Dividend

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

Size

Metric ELAN NBIX Drug Manufacturers Specialty & Generic median
Market cap 11.21b 14.12b 337.35m

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