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 $24.3B against $11.8B — 2.1× the size. Elanco Animal Health Incorporated has negative trailing earnings, so its P/E is not meaningful; United Therapeutics Corporation trades at 19.7×. Elanco Animal Health Incorporated grew revenue faster over the last twelve months: 12.0% against 1.89%. United Therapeutics Corporation has the higher net margin (38.6% vs −3.96%) and the higher return on invested capital (30.1% 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 19.75 20.55
P/S 2.36 7.57 2.08
P/B 1.80 3.77 1.79
Price to free cash flow 33.22 27.99 16.29
EV/EBITDA 19.70 14.74 12.22
EV/Sales 3.04 6.55 2.87
Earnings yield (1.73%) 5.06% (15.94%)
Free cash flow yield 3.01% 3.57% 0.00%

Profitability

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Gross margin 55.36% 86.34% 53.51%
Operating margin 1.61% 41.45% 0.00%
Net margin (3.96%) 38.61% (2.45%)
Free cash flow margin 7.55% 27.21% 0.00%
Return on equity (2.98%) 19.13% (0.80%)
Return on assets (1.46%) 17.11% (1.67%)
Return on invested capital 0.51% 30.13% 0.00%

Growth

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 11.95% 1.89% 5.22%
EPS growth (last fiscal year) (169.12%) 13.07% 42.91%
Revenue growth, 5-year CAGR 7.59% 16.50% 7.24%
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 0.04
Current ratio 2.05 4.66 2.41
Net debt to EBITDA 5.00 (1.85) 1.01

Dividend

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.45%
Payout ratio — — 0.27

Size

Metric ELAN UTHR Drug Manufacturers Specialty & Generic median
Market cap 11.83b 24.26b 315.39m

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