Harrow, Inc. (HROW) vs Ironwood Pharmaceuticals, Inc. (IRWD)

Harrow, Inc. and Ironwood Pharmaceuticals, Inc. are both Drug Manufacturers Specialty & Generic companies. Harrow, Inc. is the larger, with a market value of $976.2M against $665.9M — 1.5× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Ironwood Pharmaceuticals, Inc. trades at 4.3×. Harrow, Inc. grew revenue faster over the last twelve months: 21.1% against 18.1%. Ironwood Pharmaceuticals, Inc. has the higher net margin (37.4% vs −13.5%) and the higher return on invested capital (0.00% vs −0.77%). Across the 19 metrics below, Ironwood Pharmaceuticals, Inc. leads on 15 and Harrow, Inc. on 4.

Valuation

Metric HROW IRWD Drug Manufacturers Specialty & Generic median
P/E n/m 4.34 20.55
P/S 3.53 1.62 2.08
P/B 65.54 n/m 1.79
Price to free cash flow n/m 3.16 16.29
EV/EBITDA 55.36 4.53 12.22
EV/Sales 4.30 2.87 2.87
Earnings yield (3.80%) 23.04% (15.94%)
Free cash flow yield (1.34%) 31.61% 0.00%

Profitability

Metric HROW IRWD Drug Manufacturers Specialty & Generic median
Gross margin 73.28% 100.00% 53.51%
Operating margin (1.00%) 62.91% 0.00%
Net margin (13.51%) 37.38% (2.45%)
Free cash flow margin (4.75%) 51.31% 0.00%
Return on equity (116.07%) (82.81%) (0.80%)
Return on assets (9.77%) 43.58% (1.67%)
Return on invested capital (0.77%) 0.00% 0.00%

Growth

Metric HROW IRWD Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 21.05% 18.09% 5.22%
EPS growth (last fiscal year) 71.43% 2,627.27% 42.91%
Revenue growth, 5-year CAGR 40.99% (5.33%) 7.24%
Net income growth, 5-year CAGR 0.00% (25.72%) 0.00%

Health

Metric HROW IRWD Drug Manufacturers Specialty & Generic median
Debt to equity 19.70 0.00 0.04
Current ratio 2.24 6.51 2.41
Net debt to EBITDA 3.14 3.68 1.01

Dividend

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

Size

Metric HROW IRWD Drug Manufacturers Specialty & Generic median
Market cap 976.19m 665.91m 315.39m

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