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 $174.8B against $49.4B — 3.5× the size. Abbott Laboratories trades at the lower P/E: 32.8× against 49.6×. Edwards Lifesciences Corporation grew revenue faster over the last twelve months: 14.6% against 8.06%. Edwards Lifesciences Corporation has the higher net margin (15.4% vs 11.7%) and the higher return on invested capital (12.8% vs 5.83%). Across the 22 metrics below, Abbott Laboratories leads on 11 and Edwards Lifesciences Corporation on 11.

Valuation

Metric ABT EW Medical Devices median
P/E 32.78 49.59 22.18
P/S 3.78 7.64 2.70
P/B 3.41 4.64 2.46
Price to free cash flow 22.53 35.44 22.53
EV/EBITDA 18.84 28.56 11.78
EV/Sales 4.36 7.08 2.38
Earnings yield 3.05% 2.02% (8.22%)
Free cash flow yield 4.44% 2.82% (7.80%)

Profitability

Metric ABT EW Medical Devices median
Gross margin 56.61% 77.84% 56.01%
Operating margin 15.77% 22.25% (15.03%)
Net margin 11.65% 15.43% (20.40%)
Free cash flow margin 16.80% 22.01% (7.24%)
Return on equity 10.58% 9.42% (15.32%)
Return on assets 5.62% 7.35% (19.72%)
Return on invested capital 5.83% 12.81% (10.33%)

Growth

Metric ABT EW Medical Devices median
Revenue growth (TTM) 8.06% 14.55% 8.80%
EPS growth (last fiscal year) (51.31%) (73.74%) —
Revenue growth, 5-year CAGR 5.08% 6.70% 15.23%
Net income growth, 5-year CAGR 7.74% 5.45% 0.00%

Health

Metric ABT EW Medical Devices median
Debt to equity 0.63 0.06 0.07
Current ratio 1.38 4.52 2.50
Net debt to EBITDA 0.36 (2.55) 0.49

Dividend

Metric ABT EW Medical Devices median
Dividend yield 1.88% — 0.94%
Payout ratio 0.67 0.00 0.00

Size

Metric ABT EW Medical Devices median
Market cap 174.77b 49.41b 172.91m

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