Spero Therapeutics, Inc. (SPRO) vs Verrica Pharmaceuticals Inc. (VRCA)

Spero Therapeutics, Inc. and Verrica Pharmaceuticals Inc. are both Biotechnology companies. Spero Therapeutics, Inc. and Verrica Pharmaceuticals Inc. are of similar size ($65.8M and $64.9M). Verrica Pharmaceuticals Inc. has negative trailing earnings, so its P/E is not meaningful; Spero Therapeutics, Inc. trades at 7.9×. Verrica Pharmaceuticals Inc. grew revenue faster over the last twelve months: 106.2% against 37.2%. Spero Therapeutics, Inc. has the higher net margin (0.00% vs −102.8%) and the higher return on invested capital (0.00% vs 0.00%). Across the 16 metrics below, Spero Therapeutics, Inc. leads on 14 and Verrica Pharmaceuticals Inc. on 2.

Valuation

Metric SPRO VRCA Biotechnology median
P/E 7.86 n/m 8.50
P/S 1.04 2.49 9.71
P/B 1.44 17.51 2.13
Price to free cash flow 3.26 n/m 20.82
EV/EBITDA 2.16 n/m 0.64
EV/Sales 0.21 2.56 9.21
Earnings yield 12.73% (47.18%) (33.15%)
Free cash flow yield 30.65% (18.02%) (25.50%)

Profitability

Metric SPRO VRCA Biotechnology median
Gross margin 100.00% 85.89% 65.16%
Operating margin 0.00% (93.59%) 0.00%
Net margin 0.00% (102.84%) 0.00%
Free cash flow margin 0.00% (44.02%) 0.00%
Return on equity 19.17% 473.29% (56.36%)
Return on assets 12.85% (83.02%) (48.04%)
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric SPRO VRCA Biotechnology median
Revenue growth (TTM) 37.24% 106.21% 6.02%
EPS growth (last fiscal year) 111.81% 88.65% 30.26%
Revenue growth, 5-year CAGR 48.25% — 9.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SPRO VRCA Biotechnology median
Debt to equity 0.00 0.18 0.00
Current ratio 6.12 1.45 4.72
Net debt to EBITDA (6.38) 2.59 0.96

Dividend

Metric SPRO VRCA Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric SPRO VRCA Biotechnology median
Market cap 65.80m 64.93m 135.18m

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