Abbott Laboratories (ABT) vs Edwards Lifesciences Corporation (EW)

Abbott Laboratories and Edwards Lifesciences Corporation are both Medical Devices companies. Abbott Laboratories is the larger, with a market value of $196.6B against $58.1B — 3.4× the size. Abbott Laboratories trades at the lower P/E: 42.3× against 56.7×. Edwards Lifesciences Corporation grew revenue faster over the last twelve months: 13.4% against 10.0%. Edwards Lifesciences Corporation has the higher net margin (15.3% vs 9.75%) and the higher return on invested capital (7.79% vs 0.00%). Across the 22 metrics below, Edwards Lifesciences Corporation leads on 12 and Abbott Laboratories on 10.

Valuation

Metric ABT EW Medical Devices median
P/E 42.32 56.69 25.58
P/S 4.09 8.66 2.54
P/B 3.81 5.28 2.48
Price to free cash flow 25.23 41.48 28.81
EV/EBITDA 20.79 33.98 11.51
EV/Sales 4.65 8.21 2.72
Earnings yield 2.36% 1.76% (12.82%)
Free cash flow yield 3.96% 2.41% (8.18%)

Profitability

Metric ABT EW Medical Devices median
Gross margin 56.94% 78.02% 57.76%
Operating margin 13.78% 21.59% (15.07%)
Net margin 9.75% 15.30% (14.45%)
Free cash flow margin 0.00% 21.34% (3.88%)
Return on equity 0.00% 9.65% (10.35%)
Return on assets 0.00% 7.45% (17.26%)
Return on invested capital 0.00% 7.79% (5.27%)

Growth

Metric ABT EW Medical Devices median
Revenue growth (TTM) 10.00% 13.44% 10.41%
EPS growth (last fiscal year) (51.31%) (73.74%) 28.17%
Revenue growth, 5-year CAGR 5.08% 6.70% 15.74%
Net income growth, 5-year CAGR 7.74% 5.45% 0.00%

Health

Metric ABT EW Medical Devices median
Debt to equity 0.63 0.05 0.04
Current ratio 1.38 4.60 2.74
Net debt to EBITDA 0.36 (2.55) 0.54

Dividend

Metric ABT EW Medical Devices median
Dividend yield 2.22% — 1.02%
Payout ratio 0.94 — 0.37

Size

Metric ABT EW Medical Devices median
Market cap 196.57b 58.11b 239.53m

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