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 $2.4B against $1.4B — 1.8× the size. Xeris Biopharma Holdings, 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 38.4%. Eton Pharmaceuticals, Inc. has the higher net margin (35.4% vs −1.76%) and the higher return on invested capital (46.8% vs 27.2%). Across the 20 metrics below, Eton Pharmaceuticals, Inc. leads on 12 and Xeris Biopharma Holdings, Inc. on 8.

Valuation

Metric ETON XERS Drug Manufacturers Specialty & Generic median
P/E 26.81 n/m 20.55
P/S 9.64 6.36 2.08
P/B 15.65 48.03 1.79
Price to free cash flow 68.02 32.23 16.29
EV/EBITDA 28.65 46.61 12.22
EV/Sales 9.41 6.70 2.87
Earnings yield 3.73% (0.31%) (15.94%)
Free cash flow yield 1.47% 3.10% 0.00%

Profitability

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Gross margin 69.15% 87.38% 53.51%
Operating margin 28.84% 12.70% 0.00%
Net margin 35.35% (1.76%) (2.45%)
Free cash flow margin 14.17% 20.00% 0.00%
Return on equity 90.62% (27.11%) (0.80%)
Return on assets 38.10% (1.64%) (1.67%)
Return on invested capital 46.77% 27.22% 0.00%

Growth

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 100.61% 38.37% 5.22%
EPS growth (last fiscal year) (13.33%) 100.86% 42.91%
Revenue growth, 5-year CAGR 359.57% 70.20% 7.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Debt to equity 0.27 3.89 0.04
Current ratio 1.79 2.15 2.41
Net debt to EBITDA 1.18 2.67 1.01

Dividend

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

Size

Metric ETON XERS Drug Manufacturers Specialty & Generic median
Market cap 1.35b 2.38b 315.39m

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