DexCom, Inc. (DXCM) vs Edwards Lifesciences Corporation (EW)

DexCom, Inc. and Edwards Lifesciences Corporation are both Medical Devices companies. Edwards Lifesciences Corporation is the larger, with a market value of $49.4B against $33.0B — 1.5× the size. DexCom, Inc. trades at the lower P/E: 33.4× against 49.6×. DexCom, Inc. grew revenue faster over the last twelve months: 15.5% against 14.6%. DexCom, Inc. has the higher net margin (20.1% vs 15.4%) and the higher return on invested capital (37.1% vs 12.8%). Across the 22 metrics below, DexCom, Inc. leads on 17 and Edwards Lifesciences Corporation on 5.

Valuation

Metric DXCM EW Medical Devices median
P/E 33.44 49.59 22.18
P/S 6.66 7.64 2.70
P/B 12.63 4.64 2.46
Price to free cash flow 23.56 35.44 22.53
EV/EBITDA 23.19 28.56 11.78
EV/Sales 6.55 7.08 2.38
Earnings yield 2.99% 2.02% (8.22%)
Free cash flow yield 4.24% 2.82% (7.80%)

Profitability

Metric DXCM EW Medical Devices median
Gross margin 62.47% 77.84% 56.01%
Operating margin 22.92% 22.25% (15.03%)
Net margin 20.12% 15.43% (20.40%)
Free cash flow margin 28.27% 22.01% (7.24%)
Return on equity 38.49% 9.42% (15.32%)
Return on assets 14.51% 7.35% (19.72%)
Return on invested capital 37.13% 12.81% (10.33%)

Growth

Metric DXCM EW Medical Devices median
Revenue growth (TTM) 15.54% 14.55% 8.80%
EPS growth (last fiscal year) 47.18% (73.74%) —
Revenue growth, 5-year CAGR 19.33% 6.70% 15.23%
Net income growth, 5-year CAGR 8.75% 5.45% 0.00%

Health

Metric DXCM EW Medical Devices median
Debt to equity 0.47 0.06 0.07
Current ratio 1.73 4.52 2.50
Net debt to EBITDA (0.65) (2.55) 0.49

Dividend

Metric DXCM EW Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric DXCM EW Medical Devices median
Market cap 32.98b 49.41b 172.91m

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