Danaher Corporation (DHR) vs Waters Corporation (WAT)

Danaher Corporation and Waters Corporation are both Diagnostics & Research companies. Danaher Corporation is the larger, with a market value of $159.2B against $44.5B — 3.6× the size. Danaher Corporation trades at the lower P/E: 37.0× against 194×. Waters Corporation grew revenue faster over the last twelve months: 80.7% against 5.52%. Danaher Corporation has the higher net margin (16.9% vs 1.76%) and the higher return on invested capital (4.51% vs 1.13%). Across the 22 metrics below, Danaher Corporation leads on 15 and Waters Corporation on 7.

Valuation

Metric DHR WAT Diagnostics & Research median
P/E 36.97 193.97 34.52
P/S 6.22 7.96 4.24
P/B 2.97 2.94 3.42
Price to free cash flow 27.69 172.93 33.51
EV/EBITDA 22.31 51.94 23.44
EV/Sales 6.95 8.73 5.18
Earnings yield 2.70% 0.52% (1.50%)
Free cash flow yield 3.61% 0.58% 0.00%

Profitability

Metric DHR WAT Diagnostics & Research median
Gross margin 58.59% 49.53% 48.32%
Operating margin 20.38% 4.73% (5.68%)
Net margin 16.91% 1.76% (4.10%)
Free cash flow margin 22.46% 4.60% 0.00%
Return on equity 8.27% 0.00% 0.00%
Return on assets 5.00% 0.68% (6.05%)
Return on invested capital 4.51% 1.13% 0.00%

Growth

Metric DHR WAT Diagnostics & Research median
Revenue growth (TTM) 5.52% 80.69% 8.99%
EPS growth (last fiscal year) (4.54%) 0.47% 20.36%
Revenue growth, 5-year CAGR 1.97% 6.00% 7.30%
Net income growth, 5-year CAGR 0.59% 4.26% 0.00%

Health

Metric DHR WAT Diagnostics & Research median
Debt to equity 0.45 0.00 0.01
Current ratio 1.63 0.66 2.27
Net debt to EBITDA 1.93 0.36 0.68

Dividend

Metric DHR WAT Diagnostics & Research median
Dividend yield 0.67% — 0.67%
Payout ratio 0.25 — 0.20

Size

Metric DHR WAT Diagnostics & Research median
Market cap 159.24b 44.51b 2.22b

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