AtriCure, Inc. (ATRC) vs Kestra Medical Technologies, Ltd. (KMTS)

AtriCure, Inc. and Kestra Medical Technologies, Ltd. are both Medical Instruments & Supplies companies. AtriCure, Inc. is the larger, with a market value of $3.1B against $1.7B — 1.8× the size. Kestra Medical Technologies, Ltd. has negative trailing earnings, so its P/E is not meaningful; AtriCure, Inc. trades at 199×. Kestra Medical Technologies, Ltd. grew revenue faster over the last twelve months: 60.7% against 13.8%. AtriCure, Inc. has the higher net margin (2.52% vs −140.4%) and the higher return on invested capital (2.61% vs −93.5%). Across the 17 metrics below, AtriCure, Inc. leads on 15 and Kestra Medical Technologies, Ltd. on 2.

Valuation

Metric ATRC KMTS Medical Instruments & Supplies median
P/E 198.82 n/m 30.28
P/S 5.03 15.35 2.49
P/B 5.57 7.37 2.34
Price to free cash flow 129.39 n/m 23.49
EV/EBITDA 83.71 n/m 14.87
EV/Sales 4.85 14.16 2.75
Earnings yield 0.50% (9.55%) 0.00%
Free cash flow yield 0.77% (7.51%) 0.59%

Profitability

Metric ATRC KMTS Medical Instruments & Supplies median
Gross margin 76.74% 53.89% 53.60%
Operating margin 2.89% (134.48%) 1.97%
Net margin 2.52% (140.43%) 0.00%
Free cash flow margin 8.98% (115.31%) 2.36%
Return on equity 2.95% (73.74%) 0.00%
Return on assets 2.20% (48.85%) 0.00%
Return on invested capital 2.61% (93.49%) 0.13%

Growth

Metric ATRC KMTS Medical Instruments & Supplies median
Revenue growth (TTM) 13.79% 60.72% 8.97%
EPS growth (last fiscal year) 74.74% 52.63% 6.51%
Revenue growth, 5-year CAGR 20.95% — 8.85%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ATRC KMTS Medical Instruments & Supplies median
Debt to equity 0.11 0.33 0.10
Current ratio 4.33 4.69 2.47
Net debt to EBITDA (9.13) 1.24 0.97

Dividend

Metric ATRC KMTS Medical Instruments & Supplies median
Dividend yield — — 1.02%
Payout ratio — — 0.27

Size

Metric ATRC KMTS Medical Instruments & Supplies median
Market cap 3.12b 1.70b 1.71b

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