Fortrea Holdings Inc. (FTRE) vs Harmony Biosciences Holdings, Inc. (HRMY)

Fortrea Holdings Inc. and Harmony Biosciences Holdings, Inc. are both Biotechnology companies. Fortrea Holdings Inc. and Harmony Biosciences Holdings, Inc. are of similar size ($2.2B and $2.2B). Fortrea Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Harmony Biosciences Holdings, Inc. trades at 12.2×. Harmony Biosciences Holdings, Inc. grew revenue faster over the last twelve months: 24.3% against −2.09%. Harmony Biosciences Holdings, Inc. has the higher net margin (18.9% vs −3.18%) and the higher return on invested capital (29.7% vs −0.48%). Across the 20 metrics below, Harmony Biosciences Holdings, Inc. leads on 18 and Fortrea Holdings Inc. on 2.

Valuation

Metric FTRE HRMY Biotechnology median
P/E n/m 12.20 8.50
P/S 0.80 2.31 9.71
P/B 4.07 2.21 2.13
Price to free cash flow 10.77 7.03 20.82
EV/EBITDA 44.71 6.65 0.64
EV/Sales 1.13 1.77 9.21
Earnings yield (4.05%) 8.19% (33.15%)
Free cash flow yield 9.29% 14.22% (25.50%)

Profitability

Metric FTRE HRMY Biotechnology median
Gross margin 19.30% 75.42% 65.16%
Operating margin (0.40%) 24.03% 0.00%
Net margin (3.18%) 18.88% 0.00%
Free cash flow margin 7.40% 36.99% 0.00%
Return on equity (15.30%) 20.46% (56.36%)
Return on assets (3.07%) 14.61% (48.04%)
Return on invested capital (0.48%) 29.70% 0.00%

Growth

Metric FTRE HRMY Biotechnology median
Revenue growth (TTM) (2.09%) 24.25% 6.02%
EPS growth (last fiscal year) (194.55%) 7.97% 30.26%
Revenue growth, 5-year CAGR 1.09% 40.30% 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FTRE HRMY Biotechnology median
Debt to equity 2.01 0.15 0.00
Current ratio 0.96 3.48 4.72
Net debt to EBITDA 266.13 (2.63) 0.96

Dividend

Metric FTRE HRMY Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric FTRE HRMY Biotechnology median
Market cap 2.16b 2.23b 135.18m

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