Align Technology, Inc. (ALGN) vs Avantor, Inc. (AVTR)

Align Technology, Inc. and Avantor, Inc. are both Medical Instruments & Supplies companies. Align Technology, Inc. and Avantor, Inc. are of similar size ($10.4B and $10.4B). Avantor, Inc. has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.5×. Align Technology, Inc. grew revenue faster over the last twelve months: 4.41% against −1.57%. Align Technology, Inc. has the higher net margin (9.99% vs −8.81%) and the higher return on invested capital (10.9% vs −2.09%). Across the 21 metrics below, Align Technology, Inc. leads on 16 and Avantor, Inc. on 5.

Valuation

Metric ALGN AVTR Medical Instruments & Supplies median
P/E 25.48 n/m 34.17
P/S 2.54 1.57 2.83
P/B 2.48 1.83 2.82
Price to free cash flow 15.53 22.68 25.69
EV/EBITDA 11.71 109.80 16.08
EV/Sales 2.27 2.09 3.06
Earnings yield 3.92% (5.51%) (1.84%)
Free cash flow yield 6.44% 4.41% 0.17%

Profitability

Metric ALGN AVTR Medical Instruments & Supplies median
Gross margin 68.05% 31.83% 54.62%
Operating margin 13.23% (4.59%) 1.64%
Net margin 9.99% (8.81%) 0.00%
Free cash flow margin 16.32% 6.93% 1.61%
Return on equity 10.16% (9.70%) 0.00%
Return on assets 6.55% (4.74%) 0.00%
Return on invested capital 10.93% (2.09%) 0.00%

Growth

Metric ALGN AVTR Medical Instruments & Supplies median
Revenue growth (TTM) 4.41% (1.57%) 9.20%
EPS growth (last fiscal year) 0.53% (175.00%) —
Revenue growth, 5-year CAGR 10.30% 0.49% 9.48%
Net income growth, 5-year CAGR (25.40%) 0.00% 0.00%

Health

Metric ALGN AVTR Medical Instruments & Supplies median
Debt to equity 0.00 0.66 0.08
Current ratio 1.40 1.78 2.49
Net debt to EBITDA (1.40) 20.76 0.83

Dividend

Metric ALGN AVTR Medical Instruments & Supplies median
Dividend yield — — 0.99%
Payout ratio 0.00 0.00 0.00

Size

Metric ALGN AVTR Medical Instruments & Supplies median
Market cap 10.35b 10.40b 938.39m

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