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 $31.5B against $28.0B — 1.1× the size. Quest Diagnostics Incorporated trades at the lower P/E: 25.0× against 35.6×. Quest Diagnostics Incorporated grew revenue faster over the last twelve months: 9.13% against 5.83%. Illumina, Inc. has the higher net margin (19.7% vs 9.50%) and the higher return on invested capital (16.7% vs 8.48%). 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 24.98 35.62 34.52
P/S 2.36 6.98 4.24
P/B 3.52 10.07 3.42
Price to free cash flow 20.34 30.41 33.51
EV/EBITDA 14.18 26.35 23.44
EV/Sales 2.76 7.19 5.18
Earnings yield 4.00% 2.81% (1.50%)
Free cash flow yield 4.92% 3.29% 0.00%

Profitability

Metric DGX ILMN Diagnostics & Research median
Gross margin 33.11% 67.87% 48.32%
Operating margin 14.55% 21.18% (5.68%)
Net margin 9.50% 19.72% (4.10%)
Free cash flow margin 11.61% 23.29% 0.00%
Return on equity 14.76% 32.39% 0.00%
Return on assets 6.73% 13.78% (6.05%)
Return on invested capital 8.48% 16.70% 0.00%

Growth

Metric DGX ILMN Diagnostics & Research median
Revenue growth (TTM) 9.13% 5.83% 8.99%
EPS growth (last fiscal year) 13.78% 170.87% 20.36%
Revenue growth, 5-year CAGR 3.18% 6.04% 7.30%
Net income growth, 5-year CAGR (7.06%) 5.32% 0.00%

Health

Metric DGX ILMN Diagnostics & Research median
Debt to equity 0.70 0.57 0.01
Current ratio 1.70 2.63 2.27
Net debt to EBITDA 2.47 (0.13) 0.68

Dividend

Metric DGX ILMN Diagnostics & Research median
Dividend yield 1.33% — 0.67%
Payout ratio 0.34 — 0.20

Size

Metric DGX ILMN Diagnostics & Research median
Market cap 28.03b 31.45b 2.22b

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