Heron Therapeutics, Inc. (HRTX) vs Verrica Pharmaceuticals Inc. (VRCA)

Heron Therapeutics, Inc. and Verrica Pharmaceuticals Inc. are both Biotechnology companies. Heron Therapeutics, Inc. and Verrica Pharmaceuticals Inc. are of similar size ($53.2M and $53.1M). Verrica Pharmaceuticals Inc. grew revenue faster over the last twelve months: 106.2% against 0.99%. Heron Therapeutics, Inc. has the higher net margin (−22.5% vs −102.8%) and the lower return on invested capital (−6.35% vs 0.00%). Across the 17 metrics below, Heron Therapeutics, Inc. leads on 9 and Verrica Pharmaceuticals Inc. on 8.

Valuation

Metric HRTX VRCA Biotechnology median
P/E n/m n/m 10.60
P/S 0.37 2.26 9.40
P/B 9.42 15.93 2.13
Price to free cash flow n/m n/m 25.18
EV/EBITDA n/m n/m 0.66
EV/Sales 1.03 2.33 9.02
Earnings yield (65.52%) (51.86%) (32.88%)
Free cash flow yield (21.90%) (19.81%) (23.13%)

Profitability

Metric HRTX VRCA Biotechnology median
Gross margin 70.07% 85.89% 68.51%
Operating margin (7.19%) (93.59%) 0.00%
Net margin (22.52%) (102.84%) 0.00%
Free cash flow margin (8.00%) (44.02%) 0.00%
Return on equity 318.21% 473.29% (51.96%)
Return on assets (14.06%) (83.02%) (46.06%)
Return on invested capital (6.35%) 0.00% 0.00%

Growth

Metric HRTX VRCA Biotechnology median
Revenue growth (TTM) 0.99% 106.21% 6.76%
EPS growth (last fiscal year) (33.33%) 88.65% 29.88%
Revenue growth, 5-year CAGR 11.81% — 9.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HRTX VRCA Biotechnology median
Debt to equity 20.65 0.18 0.00
Current ratio 2.49 1.45 4.97
Net debt to EBITDA (643.88) 2.59 1.01

Dividend

Metric HRTX VRCA Biotechnology median
Dividend yield — — 0.41%
Payout ratio — — —

Size

Metric HRTX VRCA Biotechnology median
Market cap 53.16m 53.08m 161.82m

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