Eton Pharmaceuticals, Inc. (ETON) vs Xeris Biopharma Holdings, Inc. (XERS)

Eton Pharmaceuticals, Inc. and Xeris Biopharma Holdings, Inc. are both Drug Manufacturers Specialty & Generic companies. Xeris Biopharma Holdings, Inc. is the larger, with a market value of $1.8B against $1.5B — 1.3× the size. Xeris Biopharma Holdings, 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 36.3%. Eton Pharmaceuticals, Inc. has the higher net margin (12.0% vs −5.12%) and the higher return on invested capital (21.4% vs 18.9%). Across the 18 metrics below, Eton Pharmaceuticals, Inc. leads on 9 and Xeris Biopharma Holdings, Inc. on 9.

Valuation

Metric ETON XERS Drug Manufacturers Specialty & Generic median
P/E 107.23 n/m 19.25
P/S 13.19 5.30 2.11
P/B 29.91 n/m 1.78
Price to free cash flow n/m 31.91 16.14
EV/EBITDA 64.90 36.06 12.58
EV/Sales 13.20 5.69 2.73
Earnings yield 0.93% (0.94%) (4.38%)
Free cash flow yield (0.60%) 3.13% 0.00%

Profitability

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Gross margin 57.87% 86.58% 53.94%
Operating margin 15.44% 10.91% 0.00%
Net margin 12.02% (5.12%) 0.00%
Free cash flow margin (7.94%) 16.60% 0.00%
Return on equity 35.97% 118.22% (0.40%)
Return on assets 11.67% (4.60%) (3.32%)
Return on invested capital 21.39% 18.88% 0.00%

Growth

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 81.49% 36.33% 10.01%
EPS growth (last fiscal year) (13.33%) 100.86% 49.06%
Revenue growth, 5-year CAGR 359.57% 70.20% 6.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Debt to equity 0.60 (25.95) 0.05
Current ratio 1.52 1.45 2.31
Net debt to EBITDA 1.18 2.67 0.97

Dividend

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

Size

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Market cap 1.47b 1.84b 276.90m

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