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 $2.9B against $1.7B — 1.7× the size. Kestra Medical Technologies, Ltd. has negative trailing earnings, so its P/E is not meaningful; AtriCure, Inc. trades at 259×. Kestra Medical Technologies, Ltd. grew revenue faster over the last twelve months: 60.7% against 13.9%. AtriCure, Inc. has the higher net margin (1.85% vs −140.4%) and the higher return on invested capital (1.92% 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 258.96 n/m 33.75
P/S 4.79 14.95 2.52
P/B 5.29 7.17 2.48
Price to free cash flow 118.10 n/m 25.19
EV/EBITDA 77.60 n/m 14.62
EV/Sales 4.66 13.76 2.88
Earnings yield 0.39% (9.80%) (2.67%)
Free cash flow yield 0.85% (7.71%) 0.09%

Profitability

Metric ATRC KMTS Medical Instruments & Supplies median
Gross margin 76.30% 53.89% 54.29%
Operating margin 2.26% (134.48%) 1.07%
Net margin 1.85% (140.43%) (1.61%)
Free cash flow margin 9.32% (115.31%) 1.08%
Return on equity 2.15% (73.74%) (1.32%)
Return on assets 1.64% (48.85%) 0.00%
Return on invested capital 1.92% (93.49%) 0.00%

Growth

Metric ATRC KMTS Medical Instruments & Supplies median
Revenue growth (TTM) 13.94% 60.72% 8.85%
EPS growth (last fiscal year) 74.74% 52.63% 8.65%
Revenue growth, 5-year CAGR 20.95% — 9.17%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ATRC KMTS Medical Instruments & Supplies median
Debt to equity 0.14 0.33 0.10
Current ratio 4.22 4.69 2.48
Net debt to EBITDA (9.13) 1.24 0.89

Dividend

Metric ATRC KMTS Medical Instruments & Supplies median
Dividend yield — — 1.11%
Payout ratio — — 0.27

Size

Metric ATRC KMTS Medical Instruments & Supplies median
Market cap 2.94b 1.71b 619.84m

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