Harrow, Inc. (HROW) vs Phibro Animal Health Corporation (PAHC)

Harrow, Inc. and Phibro Animal Health Corporation are both Drug Manufacturers Specialty & Generic companies. Phibro Animal Health Corporation is the larger, with a market value of $1.4B against $1.2B — 1.1× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Phibro Animal Health Corporation trades at 14.0×. Harrow, Inc. grew revenue faster over the last twelve months: 21.1% against 17.1%. Phibro Animal Health Corporation has the higher net margin (6.57% vs −13.5%) and the higher return on invested capital (11.7% vs −0.77%). Across the 20 metrics below, Phibro Animal Health Corporation leads on 17 and Harrow, Inc. on 3.

Valuation

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
P/E n/m 14.00 20.14
P/S 4.48 0.92 2.25
P/B 83.21 3.62 1.90
Price to free cash flow n/m 141.58 16.54
EV/EBITDA 67.46 8.25 12.29
EV/Sales 5.24 1.35 2.56
Earnings yield (2.99%) 7.14% (2.99%)
Free cash flow yield (1.06%) 0.71% 0.00%

Profitability

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Gross margin 73.28% 33.76% 53.94%
Operating margin (1.00%) 12.81% 0.00%
Net margin (13.51%) 6.57% 0.00%
Free cash flow margin (4.75%) 0.65% 0.00%
Return on equity (116.07%) 29.72% (0.40%)
Return on assets (9.77%) 6.97% (3.32%)
Return on invested capital (0.77%) 11.72% 0.00%

Growth

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Revenue growth (TTM) 21.05% 17.12% 10.01%
EPS growth (last fiscal year) 71.43% 104.20% —
Revenue growth, 5-year CAGR 40.99% 12.74% 6.74%
Net income growth, 5-year CAGR 0.00% 12.89% 0.00%

Health

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Debt to equity 19.70 1.90 0.05
Current ratio 2.24 2.96 2.31
Net debt to EBITDA 3.14 2.62 0.85

Dividend

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Dividend yield — 4.19% 1.70%
Payout ratio 0.00 0.59 0.00

Size

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Market cap 1.24b 1.38b 337.35m

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