Eton Pharmaceuticals, Inc. (ETON) vs Harrow, Inc. (HROW)

Eton Pharmaceuticals, Inc. and Harrow, Inc. are both Drug Manufacturers Specialty & Generic companies. Eton Pharmaceuticals, Inc. is the larger, with a market value of $1.7B against $1.2B — 1.4× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Eton Pharmaceuticals, Inc. trades at 123×. Eton Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 81.5% against 21.1%. Eton Pharmaceuticals, Inc. has the higher net margin (12.0% vs −13.5%) and the higher return on invested capital (21.4% vs −0.77%). Across the 19 metrics below, Eton Pharmaceuticals, Inc. leads on 12 and Harrow, Inc. on 7.

Valuation

Metric ETON HROW Drug Manufacturers Specialty & Generic median
P/E 122.72 n/m 20.14
P/S 15.10 4.48 2.25
P/B 34.23 83.21 1.90
Price to free cash flow n/m n/m 16.54
EV/EBITDA 74.26 67.46 12.29
EV/Sales 15.11 5.24 2.56
Earnings yield 0.81% (2.99%) (2.99%)
Free cash flow yield (0.53%) (1.06%) 0.00%

Profitability

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Gross margin 57.87% 73.28% 53.94%
Operating margin 15.44% (1.00%) 0.00%
Net margin 12.02% (13.51%) 0.00%
Free cash flow margin (7.94%) (4.75%) 0.00%
Return on equity 35.97% (116.07%) (0.40%)
Return on assets 11.67% (9.77%) (3.32%)
Return on invested capital 21.39% (0.77%) 0.00%

Growth

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 81.49% 21.05% 10.01%
EPS growth (last fiscal year) (13.33%) 71.43% —
Revenue growth, 5-year CAGR 359.57% 40.99% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Debt to equity 0.60 19.70 0.05
Current ratio 1.52 2.24 2.31
Net debt to EBITDA 1.18 3.14 0.85

Dividend

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.70%
Payout ratio 0.00 0.00 0.00

Size

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Market cap 1.72b 1.24b 337.35m

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