Align Technology, Inc. (ALGN) vs Bausch + Lomb Corporation (BLCO)

Align Technology, Inc. and Bausch + Lomb Corporation are both Medical Instruments & Supplies companies. Align Technology, Inc. is the larger, with a market value of $11.3B against $7.1B — 1.6× the size. Bausch + Lomb Corporation has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 23.1×. Bausch + Lomb Corporation grew revenue faster over the last twelve months: 8.88% against 4.42%. Align Technology, Inc. has the higher net margin (11.8% vs −2.05%) and the higher return on invested capital (12.3% vs 2.16%). Across the 21 metrics below, Align Technology, Inc. leads on 15 and Bausch + Lomb Corporation on 6.

Valuation

Metric ALGN BLCO Medical Instruments & Supplies median
P/E 23.08 n/m 30.28
P/S 2.71 1.32 2.49
P/B 2.66 1.10 2.34
Price to free cash flow 16.84 31.41 23.49
EV/EBITDA 12.64 14.62 14.87
EV/Sales 2.44 2.16 2.75
Earnings yield 4.33% (1.52%) 0.00%
Free cash flow yield 5.94% 3.18% 0.59%

Profitability

Metric ALGN BLCO Medical Instruments & Supplies median
Gross margin 69.14% 62.55% 53.60%
Operating margin 14.92% 7.07% 1.97%
Net margin 11.83% (2.05%) 0.00%
Free cash flow margin 18.03% 4.65% 2.36%
Return on equity 0.00% (1.71%) 0.00%
Return on assets 7.71% (0.80%) 0.00%
Return on invested capital 12.27% 2.16% 0.13%

Growth

Metric ALGN BLCO Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% 8.88% 8.97%
EPS growth (last fiscal year) 0.53% (13.33%) 6.51%
Revenue growth, 5-year CAGR 10.30% 8.38% 8.85%
Net income growth, 5-year CAGR (25.40%) 0.00% 0.00%

Health

Metric ALGN BLCO Medical Instruments & Supplies median
Debt to equity 0.00 0.78 0.10
Current ratio 1.42 1.56 2.47
Net debt to EBITDA (1.40) 8.49 0.97

Dividend

Metric ALGN BLCO Medical Instruments & Supplies median
Dividend yield — — 1.02%
Payout ratio — — 0.27

Size

Metric ALGN BLCO Medical Instruments & Supplies median
Market cap 11.32b 7.12b 1.71b

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