Danaher Corporation (DHR) vs Natera, Inc. (NTRA)

Danaher Corporation and Natera, Inc. are both Diagnostics & Research companies. Danaher Corporation is the larger, with a market value of $162.7B against $58.4B — 2.8× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Danaher Corporation trades at 40.5×. Natera, Inc. grew revenue faster over the last twelve months: 37.8% against 4.56%. Danaher Corporation has the higher net margin (16.0% vs −7.11%) and the higher return on invested capital (4.37% vs −22.3%). Across the 20 metrics below, Danaher Corporation leads on 14 and Natera, Inc. on 6.

Valuation

Metric DHR NTRA Diagnostics & Research median
P/E 40.53 n/m 35.56
P/S 6.43 20.75 4.37
P/B 3.07 30.83 3.06
Price to free cash flow 29.42 667.04 35.76
EV/EBITDA 23.66 n/m 24.35
EV/Sales 7.26 20.48 5.51
Earnings yield 2.47% (0.35%) (1.89%)
Free cash flow yield 3.40% 0.15% (0.15%)

Profitability

Metric DHR NTRA Diagnostics & Research median
Gross margin 58.51% 65.23% 50.89%
Operating margin 20.42% (10.70%) (8.57%)
Net margin 15.95% (7.11%) (6.37%)
Free cash flow margin 21.86% 3.11% 0.00%
Return on equity 7.63% (12.54%) (2.92%)
Return on assets 4.60% (8.71%) (6.71%)
Return on invested capital 4.37% (22.34%) 0.00%

Growth

Metric DHR NTRA Diagnostics & Research median
Revenue growth (TTM) 4.56% 37.82% 7.69%
EPS growth (last fiscal year) (4.54%) 0.65% 25.92%
Revenue growth, 5-year CAGR 1.97% 42.61% 7.40%
Net income growth, 5-year CAGR 0.59% 0.00% 0.00%

Health

Metric DHR NTRA Diagnostics & Research median
Debt to equity 0.48 0.04 0.11
Current ratio 1.65 3.00 2.02
Net debt to EBITDA 1.93 3.74 0.70

Dividend

Metric DHR NTRA Diagnostics & Research median
Dividend yield 0.66% — 0.66%
Payout ratio 0.27 — 0.20

Size

Metric DHR NTRA Diagnostics & Research median
Market cap 162.74b 58.35b 2.16b

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