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 $10.4B against $6.0B — 1.7× the size. Bausch + Lomb Corporation has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.5×. 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 25.48 n/m 34.17
P/S 2.54 1.13 2.83
P/B 2.48 0.94 2.82
Price to free cash flow 15.53 53.95 25.69
EV/EBITDA 11.71 14.39 16.08
EV/Sales 2.27 2.02 3.06
Earnings yield 3.92% (2.84%) (1.84%)
Free cash flow yield 6.44% 1.85% 0.17%

Profitability

Metric ALGN BLCO Medical Instruments & Supplies median
Gross margin 68.05% 61.44% 54.62%
Operating margin 13.23% 6.07% 1.64%
Net margin 9.99% (3.21%) 0.00%
Free cash flow margin 16.32% 2.57% 1.61%
Return on equity 10.16% (2.64%) 0.00%
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% 9.20%
EPS growth (last fiscal year) 0.53% (13.33%) —
Revenue growth, 5-year CAGR 10.30% 8.38% 9.48%
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 0.08
Current ratio 1.40 1.55 2.49
Net debt to EBITDA (1.40) 8.49 0.83

Dividend

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

Size

Metric ALGN BLCO Medical Instruments & Supplies median
Market cap 10.35b 6.00b 938.39m

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