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 $10.6B against $6.0B — 1.8× the size. Bausch + Lomb Corporation has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.6×. Bausch + Lomb Corporation grew revenue faster over the last twelve months: 8.85% against 4.41%. Align Technology, Inc. has the higher net margin (9.99% vs −3.21%) and the higher return on invested capital (10.9% vs 1.81%). 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 25.57 n/m 33.75
P/S 2.54 1.10 2.52
P/B 2.49 0.91 2.48
Price to free cash flow 15.59 52.29 25.19
EV/EBITDA 11.76 14.14 14.62
EV/Sales 2.28 1.99 2.88
Earnings yield 3.91% (2.93%) (2.67%)
Free cash flow yield 6.41% 1.91% 0.09%

Profitability

Metric ALGN BLCO Medical Instruments & Supplies median
Gross margin 68.05% 61.44% 54.29%
Operating margin 13.23% 6.07% 1.07%
Net margin 9.99% (3.21%) (1.61%)
Free cash flow margin 16.32% 2.57% 1.08%
Return on equity 10.16% (2.64%) (1.32%)
Return on assets 6.55% (1.24%) 0.00%
Return on invested capital 10.93% 1.81% 0.00%

Growth

Metric ALGN BLCO Medical Instruments & Supplies median
Revenue growth (TTM) 4.41% 8.85% 8.85%
EPS growth (last fiscal year) 0.53% (13.33%) 8.65%
Revenue growth, 5-year CAGR 10.30% 8.38% 9.17%
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 0.79 0.10
Current ratio 1.40 1.55 2.48
Net debt to EBITDA (1.40) 8.49 0.89

Dividend

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

Size

Metric ALGN BLCO Medical Instruments & Supplies median
Market cap 10.61b 5.95b 619.84m

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