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 $162.7B against $43.6B — 3.7× the size. Danaher Corporation trades at the lower P/E: 40.5× against 109×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 4.56%. Danaher Corporation has the higher net margin (16.0% vs 3.59%) and the higher return on invested capital (4.37% vs 1.05%). Across the 22 metrics below, Danaher Corporation leads on 14 and Waters Corporation on 8.

Valuation

Metric DHR WAT Diagnostics & Research median
P/E 40.53 108.69 35.56
P/S 6.43 9.24 4.37
P/B 3.07 2.82 3.06
Price to free cash flow 29.42 117.05 35.76
EV/EBITDA 23.66 50.12 24.35
EV/Sales 7.26 10.18 5.51
Earnings yield 2.47% 0.92% (1.89%)
Free cash flow yield 3.40% 0.85% (0.15%)

Profitability

Metric DHR WAT Diagnostics & Research median
Gross margin 58.51% 50.89% 50.89%
Operating margin 20.42% 7.10% (8.57%)
Net margin 15.95% 3.59% (6.37%)
Free cash flow margin 21.86% 7.89% 0.00%
Return on equity 7.63% 1.92% (2.92%)
Return on assets 4.60% 1.13% (6.71%)
Return on invested capital 4.37% 1.05% 0.00%

Growth

Metric DHR WAT Diagnostics & Research median
Revenue growth (TTM) 4.56% 52.47% 7.69%
EPS growth (last fiscal year) (4.54%) 0.47% 25.92%
Revenue growth, 5-year CAGR 1.97% 6.00% 7.40%
Net income growth, 5-year CAGR 0.59% 4.26% 0.00%

Health

Metric DHR WAT Diagnostics & Research median
Debt to equity 0.48 0.32 0.11
Current ratio 1.65 1.86 2.02
Net debt to EBITDA 1.93 0.36 0.70

Dividend

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

Size

Metric DHR WAT Diagnostics & Research median
Market cap 162.74b 43.64b 2.16b

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