Charles River Laboratories International, Inc. (CRL) vs Labcorp Holdings Inc. (LH)

Charles River Laboratories International, Inc. and Labcorp Holdings Inc. are both Diagnostics & Research companies. Labcorp Holdings Inc. is the larger, with a market value of $21.9B against $14.1B — 1.6× the size. Charles River Laboratories International, Inc. has negative trailing earnings, so its P/E is not meaningful; Labcorp Holdings Inc. trades at 25.4×. Labcorp Holdings Inc. grew revenue faster over the last twelve months: 6.41% against −0.74%. Labcorp Holdings Inc. has the higher net margin (6.99% vs −5.96%) and the higher return on invested capital (6.50% vs 1.07%). Across the 21 metrics below, Labcorp Holdings Inc. leads on 17 and Charles River Laboratories International, Inc. on 4.

Valuation

Metric CRL LH Diagnostics & Research median
P/E n/m 25.44 33.95
P/S 3.52 1.76 4.87
P/B 4.94 2.94 3.12
Price to free cash flow 37.94 24.51 34.02
EV/EBITDA 29.82 14.70 25.20
EV/Sales 4.12 2.25 5.66
Earnings yield (1.65%) 3.93% (1.75%)
Free cash flow yield 2.64% 4.08% (0.13%)

Profitability

Metric CRL LH Diagnostics & Research median
Gross margin 32.67% 28.88% 50.89%
Operating margin 2.25% 10.43% (8.57%)
Net margin (5.96%) 6.99% (6.37%)
Free cash flow margin 9.27% 8.16% 0.00%
Return on equity (7.69%) 11.74% (2.92%)
Return on assets (3.16%) 5.48% (6.71%)
Return on invested capital 1.07% 6.50% 0.00%

Growth

Metric CRL LH Diagnostics & Research median
Revenue growth (TTM) (0.74%) 6.41% 7.69%
EPS growth (last fiscal year) (1,555.00%) 18.33% —
Revenue growth, 5-year CAGR 6.55% (0.04%) 7.40%
Net income growth, 5-year CAGR 0.00% (10.85%) 0.00%

Health

Metric CRL LH Diagnostics & Research median
Debt to equity 0.92 0.69 0.11
Current ratio 1.35 1.80 2.02
Net debt to EBITDA 3.24 2.23 0.78

Dividend

Metric CRL LH Diagnostics & Research median
Dividend yield — 0.98% 0.70%
Payout ratio 0.00 0.27 0.00

Size

Metric CRL LH Diagnostics & Research median
Market cap 14.09b 21.86b 2.56b

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