Insmed, Inc. (INSM) vs Jazz Pharmaceuticals PLC (JAZZ)

Insmed, Inc. and Jazz Pharmaceuticals PLC are both Biotechnology companies. Insmed, Inc. is the larger, with a market value of $21.7B against $13.9B — 1.6× the size. Insmed, Inc. has negative trailing earnings, so its P/E is not meaningful; Jazz Pharmaceuticals PLC trades at 13.8×. Insmed, Inc. grew revenue faster over the last twelve months: 185.8% against 12.6%. Jazz Pharmaceuticals PLC has the higher net margin (20.5% vs −76.9%) and the higher return on invested capital (8.06% vs −329.2%). Across the 18 metrics below, Jazz Pharmaceuticals PLC leads on 12 and Insmed, Inc. on 6.

Valuation

Metric INSM JAZZ Biotechnology median
P/E n/m 13.77 8.50
P/S 18.39 2.89 9.71
P/B 27.62 2.76 2.13
Price to free cash flow n/m 9.37 20.82
EV/EBITDA n/m 9.55 0.64
EV/Sales 18.06 3.35 9.21
Earnings yield (4.27%) 7.26% (33.15%)
Free cash flow yield (3.86%) 10.67% (25.50%)

Profitability

Metric INSM JAZZ Biotechnology median
Gross margin 83.46% 88.42% 65.16%
Operating margin (73.89%) 19.49% 0.00%
Net margin (76.94%) 20.45% 0.00%
Free cash flow margin (71.00%) 30.79% 0.00%
Return on equity (87.22%) 22.11% (56.36%)
Return on assets (38.20%) 8.54% (48.04%)
Return on invested capital (329.22%) 8.06% 0.00%

Growth

Metric INSM JAZZ Biotechnology median
Revenue growth (TTM) 185.76% 12.59% 6.02%
EPS growth (last fiscal year) (15.26%) (167.51%) 30.26%
Revenue growth, 5-year CAGR 29.83% 12.54% 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric INSM JAZZ Biotechnology median
Debt to equity 0.74 0.91 0.00
Current ratio 3.72 1.78 4.72
Net debt to EBITDA 0.71 10.96 0.96

Dividend

Metric INSM JAZZ Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric INSM JAZZ Biotechnology median
Market cap 21.67b 13.92b 135.18m

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