Align Technology, Inc. (ALGN) vs Teleflex Incorporated (TFX)

Align Technology, Inc. and Teleflex Incorporated are both Medical Instruments & Supplies companies. Align Technology, Inc. is the larger, with a market value of $11.3B against $6.5B — 1.8× the size. Teleflex Incorporated has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 23.1×. Teleflex Incorporated grew revenue faster over the last twelve months: 30.7% against 4.42%. Align Technology, Inc. has the higher net margin (11.8% vs −45.8%) and the higher return on invested capital (12.3% vs 0.51%). Across the 21 metrics below, Align Technology, Inc. leads on 17 and Teleflex Incorporated on 4.

Valuation

Metric ALGN TFX Medical Instruments & Supplies median
P/E 23.08 n/m 30.28
P/S 2.71 2.94 2.49
P/B 2.66 2.28 2.34
Price to free cash flow 16.84 124.77 23.49
EV/EBITDA 12.64 35.66 14.87
EV/Sales 2.44 4.05 2.75
Earnings yield 4.33% (15.30%) 0.00%
Free cash flow yield 5.94% 0.80% 0.59%

Profitability

Metric ALGN TFX Medical Instruments & Supplies median
Gross margin 69.14% 54.94% 53.60%
Operating margin 14.92% 1.97% 1.97%
Net margin 11.83% (45.76%) 0.00%
Free cash flow margin 18.03% 2.36% 2.36%
Return on equity 0.00% (28.87%) 0.00%
Return on assets 7.71% (14.57%) 0.00%
Return on invested capital 12.27% 0.51% 0.13%

Growth

Metric ALGN TFX Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% 30.70% 8.97%
EPS growth (last fiscal year) 0.53% (1,468.24%) 6.51%
Revenue growth, 5-year CAGR 10.30% (4.72%) 8.85%
Net income growth, 5-year CAGR (25.40%) 0.00% 0.00%

Health

Metric ALGN TFX Medical Instruments & Supplies median
Debt to equity 0.00 0.97 0.10
Current ratio 1.42 2.60 2.47
Net debt to EBITDA (1.40) 7.52 0.97

Dividend

Metric ALGN TFX Medical Instruments & Supplies median
Dividend yield — 0.89% 1.02%
Payout ratio — — 0.27

Size

Metric ALGN TFX Medical Instruments & Supplies median
Market cap 11.32b 6.45b 1.71b

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