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 $1.5B against $1.1B — 1.4× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Eton Pharmaceuticals, Inc. trades at 107×. 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 107.23 n/m 19.25
P/S 13.19 3.70 2.11
P/B 29.91 68.64 1.78
Price to free cash flow n/m n/m 16.14
EV/EBITDA 64.90 57.50 12.58
EV/Sales 13.20 4.47 2.73
Earnings yield 0.93% (3.63%) (4.38%)
Free cash flow yield (0.60%) (1.28%) 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% 49.06%
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 0.97

Dividend

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.57%
Payout ratio — — 0.27

Size

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Market cap 1.47b 1.08b 276.90m

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