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 $1.4B against $976.2M — 1.4× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Eton Pharmaceuticals, Inc. trades at 26.8×. Eton Pharmaceuticals, Inc. grew revenue faster over the last twelve months: 100.6% against 21.1%. Eton Pharmaceuticals, Inc. has the higher net margin (35.4% vs −13.5%) and the higher return on invested capital (46.8% vs −0.77%). Across the 19 metrics below, Eton Pharmaceuticals, Inc. leads on 14 and Harrow, Inc. on 5.

Valuation

Metric ETON HROW Drug Manufacturers Specialty & Generic median
P/E 26.81 n/m 20.55
P/S 9.64 3.53 2.08
P/B 15.65 65.54 1.79
Price to free cash flow 68.02 n/m 16.29
EV/EBITDA 28.65 55.36 12.22
EV/Sales 9.41 4.30 2.87
Earnings yield 3.73% (3.80%) (15.94%)
Free cash flow yield 1.47% (1.34%) 0.00%

Profitability

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Gross margin 69.15% 73.28% 53.51%
Operating margin 28.84% (1.00%) 0.00%
Net margin 35.35% (13.51%) (2.45%)
Free cash flow margin 14.17% (4.75%) 0.00%
Return on equity 90.62% (116.07%) (0.80%)
Return on assets 38.10% (9.77%) (1.67%)
Return on invested capital 46.77% (0.77%) 0.00%

Growth

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 100.61% 21.05% 5.22%
EPS growth (last fiscal year) (13.33%) 71.43% 42.91%
Revenue growth, 5-year CAGR 359.57% 40.99% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Debt to equity 0.27 19.70 0.04
Current ratio 1.79 2.24 2.41
Net debt to EBITDA 1.18 3.14 1.01

Dividend

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Dividend yield — — 1.45%
Payout ratio — — 0.27

Size

Metric ETON HROW Drug Manufacturers Specialty & Generic median
Market cap 1.35b 976.19m 315.39m

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