AdaptHealth Corp. (AHCO) vs VAREX IMAGING (VREX)

AdaptHealth Corp. and VAREX IMAGING are both Medical Devices companies. AdaptHealth Corp. and VAREX IMAGING are of similar size ($784.3M and $756.7M). AdaptHealth Corp. has negative trailing earnings, so its P/E is not meaningful; VAREX IMAGING trades at 34.8×. AdaptHealth Corp. grew revenue faster over the last twelve months: 8.80% against 5.31%. VAREX IMAGING has the higher net margin (2.55% vs −6.77%) and the higher return on invested capital (5.95% vs −2.50%). Across the 19 metrics below, VAREX IMAGING leads on 11 and AdaptHealth Corp. on 8.

Valuation

Metric AHCO VREX Medical Devices median
P/E n/m 34.81 22.18
P/S 0.23 0.90 2.70
P/B 0.55 1.52 2.46
Price to free cash flow 7.75 n/m 22.53
EV/EBITDA 4.64 10.15 11.78
EV/Sales 0.78 1.18 2.38
Earnings yield (30.14%) 2.87% (8.22%)
Free cash flow yield 12.91% (2.60%) (7.80%)

Profitability

Metric AHCO VREX Medical Devices median
Gross margin 16.87% 34.32% 56.01%
Operating margin (3.87%) 8.35% (15.03%)
Net margin (6.77%) 2.55% (20.40%)
Free cash flow margin 2.94% (2.34%) (7.24%)
Return on equity (15.32%) 4.51% (15.32%)
Return on assets (5.25%) 2.03% (19.72%)
Return on invested capital (2.50%) 5.95% (10.33%)

Growth

Metric AHCO VREX Medical Devices median
Revenue growth (TTM) 8.80% 5.31% 8.80%
EPS growth (last fiscal year) (185.25%) (45.30%) —
Revenue growth, 5-year CAGR 24.83% 2.73% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AHCO VREX Medical Devices median
Debt to equity 1.38 0.68 0.07
Current ratio 1.12 3.38 2.50
Net debt to EBITDA 2.74 2.21 0.49

Dividend

Metric AHCO VREX Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric AHCO VREX Medical Devices median
Market cap 756.74m 784.30m 172.91m

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