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 $1.5B against $1.1B — 1.4× the size. Harrow, Inc. has negative trailing earnings, so its P/E is not meaningful; Phibro Animal Health Corporation trades at 15.8×. 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 15.78 19.25
P/S 3.70 1.04 2.11
P/B 68.64 4.08 1.78
Price to free cash flow n/m 159.54 16.14
EV/EBITDA 57.50 8.96 12.58
EV/Sales 4.47 1.47 2.73
Earnings yield (3.63%) 6.34% (4.38%)
Free cash flow yield (1.28%) 0.63% 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% 49.06%
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 0.97

Dividend

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Dividend yield — 1.24% 1.57%
Payout ratio — 0.20 0.27

Size

Metric HROW PAHC Drug Manufacturers Specialty & Generic median
Market cap 1.08b 1.54b 276.90m

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