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 $10.6B against $5.4B — 2.0× the size. Teleflex Incorporated has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.6×. Teleflex Incorporated grew revenue faster over the last twelve months: 110.9% against 4.41%. Align Technology, Inc. has the higher net margin (9.99% vs −45.8%) and the higher return on invested capital (10.9% vs 0.51%). Across the 21 metrics below, Align Technology, Inc. leads on 16 and Teleflex Incorporated on 5.

Valuation

Metric ALGN TFX Medical Instruments & Supplies median
P/E 25.57 n/m 33.75
P/S 2.54 2.52 2.52
P/B 2.49 1.96 2.48
Price to free cash flow 15.59 33.74 25.19
EV/EBITDA 11.76 31.97 14.62
EV/Sales 2.28 3.63 2.88
Earnings yield 3.91% (17.85%) (2.67%)
Free cash flow yield 6.41% 2.96% 0.09%

Profitability

Metric ALGN TFX Medical Instruments & Supplies median
Gross margin 68.05% 54.94% 54.29%
Operating margin 13.23% 1.97% 1.07%
Net margin 9.99% (45.76%) (1.61%)
Free cash flow margin 16.32% 7.47% 1.08%
Return on equity 10.16% (28.87%) (1.32%)
Return on assets 6.55% (14.57%) 0.00%
Return on invested capital 10.93% 0.51% 0.00%

Growth

Metric ALGN TFX Medical Instruments & Supplies median
Revenue growth (TTM) 4.41% 110.94% 8.85%
EPS growth (last fiscal year) 0.53% (1,468.24%) 8.65%
Revenue growth, 5-year CAGR 10.30% (4.72%) 9.17%
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 1.40 2.60 2.48
Net debt to EBITDA (1.40) 7.52 0.89

Dividend

Metric ALGN TFX Medical Instruments & Supplies median
Dividend yield — 1.04% 1.11%
Payout ratio — — 0.27

Size

Metric ALGN TFX Medical Instruments & Supplies median
Market cap 10.61b 5.43b 619.84m

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