Quest Diagnostics Incorporated (DGX) vs Illumina, Inc. (ILMN)

Quest Diagnostics Incorporated and Illumina, Inc. are both Diagnostics & Research companies. Illumina, Inc. is the larger, with a market value of $41.3B against $26.2B — 1.6× the size. Quest Diagnostics Incorporated trades at the lower P/E: 24.8× against 50.4×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.87% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs 9.15%) and the higher return on invested capital (17.5% vs 7.94%). Across the 22 metrics below, Illumina, Inc. leads on 13 and Quest Diagnostics Incorporated on 9.

Valuation

Metric DGX ILMN Diagnostics & Research median
P/E 24.77 50.39 33.95
P/S 2.27 9.16 4.87
P/B 3.35 14.50 3.12
Price to free cash flow 19.45 44.94 34.02
EV/EBITDA 14.14 35.99 25.20
EV/Sales 2.70 9.25 5.66
Earnings yield 4.04% 1.98% (1.75%)
Free cash flow yield 5.14% 2.23% (0.13%)

Profitability

Metric DGX ILMN Diagnostics & Research median
Gross margin 33.11% 66.39% 50.89%
Operating margin 14.10% 19.65% (8.57%)
Net margin 9.15% 18.36% (6.37%)
Free cash flow margin 11.67% 20.72% 0.00%
Return on equity 14.03% 32.38% (2.92%)
Return on assets 6.43% 12.95% (6.71%)
Return on invested capital 7.94% 17.46% 0.00%

Growth

Metric DGX ILMN Diagnostics & Research median
Revenue growth (TTM) 9.87% 4.88% 7.69%
EPS growth (last fiscal year) 13.78% 170.87% —
Revenue growth, 5-year CAGR 3.18% 6.04% 7.40%
Net income growth, 5-year CAGR (7.06%) 5.32% 0.00%

Health

Metric DGX ILMN Diagnostics & Research median
Debt to equity 0.72 0.53 0.11
Current ratio 1.59 1.80 2.02
Net debt to EBITDA 2.47 (0.13) 0.78

Dividend

Metric DGX ILMN Diagnostics & Research median
Dividend yield 2.30% — 0.70%
Payout ratio 0.29 0.00 0.00

Size

Metric DGX ILMN Diagnostics & Research median
Market cap 26.19b 41.25b 2.56b

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