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 ($10.9B and $10.6B). Avantor, Inc. has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.6×. 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 25.57 n/m 33.75
P/S 2.54 1.69 2.52
P/B 2.49 1.97 2.48
Price to free cash flow 15.59 24.42 25.19
EV/EBITDA 11.76 116.14 14.62
EV/Sales 2.28 2.21 2.88
Earnings yield 3.91% (5.12%) (2.67%)
Free cash flow yield 6.41% 4.10% 0.09%

Profitability

Metric ALGN AVTR Medical Instruments & Supplies median
Gross margin 68.05% 31.83% 54.29%
Operating margin 13.23% (4.59%) 1.07%
Net margin 9.99% (8.81%) (1.61%)
Free cash flow margin 16.32% 6.93% 1.08%
Return on equity 10.16% (9.70%) (1.32%)
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%) 8.85%
EPS growth (last fiscal year) 0.53% (175.00%) 8.65%
Revenue growth, 5-year CAGR 10.30% 0.49% 9.17%
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 0.10
Current ratio 1.40 1.78 2.48
Net debt to EBITDA (1.40) 20.76 0.89

Dividend

Metric ALGN AVTR Medical Instruments & Supplies median
Dividend yield — — 1.11%
Payout ratio — — 0.27

Size

Metric ALGN AVTR Medical Instruments & Supplies median
Market cap 10.61b 10.88b 619.84m

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