RYTHM, Inc. (RYM) vs Turning Point Brands, Inc. (TPB)

RYTHM, Inc. and Turning Point Brands, Inc. are both Tobacco companies. Turning Point Brands, Inc. is the larger, with a market value of $1.2B against $48.3M — 25.1× the size. RYTHM, Inc. has negative trailing earnings, so its P/E is not meaningful; Turning Point Brands, Inc. trades at 26.1×. RYTHM, Inc. grew revenue faster over the last twelve months: 316.1% against 24.5%. Turning Point Brands, Inc. has the higher net margin (8.78% vs −6.20%) and the higher return on invested capital (9.77% vs −19.2%). Across the 20 metrics below, RYTHM, Inc. leads on 10 and Turning Point Brands, Inc. on 10.

Valuation

Metric RYM TPB Tobacco median
P/E n/m 26.08 15.85
P/S 0.92 2.43 2.43
P/B 1.20 2.72 0.92
Price to free cash flow 35.70 62.89 29.52
EV/EBITDA n/m 16.22 10.47
EV/Sales 2.66 2.72 2.66
Earnings yield (9.79%) 3.83% 3.65%
Free cash flow yield 2.80% 1.59% 1.59%

Profitability

Metric RYM TPB Tobacco median
Gross margin 75.18% 59.16% 47.05%
Operating margin (46.92%) 14.79% 0.00%
Net margin (6.20%) 8.78% 0.67%
Free cash flow margin 2.54% 3.87% 2.54%
Return on equity (10.54%) 13.13% (10.54%)
Return on assets (3.09%) 6.14% 0.00%
Return on invested capital (19.23%) 9.77% 1.93%

Growth

Metric RYM TPB Tobacco median
Revenue growth (TTM) 316.07% 24.49% (0.30%)
EPS growth (last fiscal year) 59.24% 45.33% —
Revenue growth, 5-year CAGR 7.41% 2.71% 1.07%
Net income growth, 5-year CAGR 0.00% 8.78% 0.00%

Health

Metric RYM TPB Tobacco median
Debt to equity 2.06 0.65 0.02
Current ratio 0.59 5.67 1.41
Net debt to EBITDA (1.85) 0.68 0.64

Dividend

Metric RYM TPB Tobacco median
Dividend yield — 1.13% 5.95%
Payout ratio 0.00 0.35 0.35

Size

Metric RYM TPB Tobacco median
Market cap 48.25m 1.21b 1.20b

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