Elanco Animal Health Incorporated (ELAN) vs United Therapeutics Corporation (UTHR)

Elanco Animal Health Incorporated and United Therapeutics Corporation are both Drug Manufacturers Specialty & Generic companies. United Therapeutics Corporation is the larger, with a market value of $20.3B against $11.2B — 1.8× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; United Therapeutics Corporation trades at 15.7×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 2.49%. United Therapeutics Corporation has the higher net margin (41.6% vs −3.96%) and the higher return on invested capital (23.4% vs 0.51%). Across the 21 metrics below, United Therapeutics Corporation leads on 17 and Elanco Animal Health Incorporated on 4.

Valuation

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
P/E n/m 15.70 20.14
P/S 2.22 6.42 2.25
P/B 1.69 3.16 1.90
Price to free cash flow 31.22 18.62 16.54
EV/EBITDA 18.78 11.98 12.29
EV/Sales 2.89 5.67 2.56
Earnings yield (1.84%) 6.37% (2.99%)
Free cash flow yield 3.20% 5.37% 0.00%

Profitability

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 86.14% 53.94%
Operating margin 1.61% 44.44% 0.00%
Net margin (3.96%) 41.56% 0.00%
Free cash flow margin 7.55% 34.65% 0.00%
Return on equity (2.98%) 19.32% (0.40%)
Return on assets (1.46%) 17.33% (3.32%)
Return on invested capital 0.51% 23.44% 0.00%

Growth

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 2.49% 10.01%
EPS growth (last fiscal year) (169.12%) 13.07% —
Revenue growth, 5-year CAGR 7.59% 16.50% 6.74%
Net income growth, 5-year CAGR 0.00% 20.99% 0.00%

Health

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Debt to equity 0.59 0.00 0.05
Current ratio 2.05 5.73 2.31
Net debt to EBITDA 5.00 (1.85) 0.85

Dividend

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

Size

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Market cap 11.21b 20.25b 337.35m

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