DexCom, Inc. (DXCM) vs STERIS plc (STE)

DexCom, Inc. and STERIS plc are both Medical Devices companies. DexCom, Inc. is the larger, with a market value of $31.5B against $24.8B — 1.3× the size. STERIS plc trades at the lower P/E: 30.0× against 32.6×. DexCom, Inc. grew revenue faster over the last twelve months: 13.0% against 8.12%. DexCom, Inc. has the higher net margin (19.4% vs 13.4%) and the higher return on invested capital (39.0% vs 8.47%). Across the 22 metrics below, DexCom, Inc. leads on 11 and STERIS plc on 11.

Valuation

Metric DXCM STE Medical Devices median
P/E 32.61 30.00 25.58
P/S 6.20 4.01 2.54
P/B 12.48 3.40 2.48
Price to free cash flow 28.81 26.35 28.81
EV/EBITDA 21.24 15.65 11.51
EV/Sales 6.24 4.23 2.72
Earnings yield 3.07% 3.33% (12.82%)
Free cash flow yield 3.47% 3.79% (8.18%)

Profitability

Metric DXCM STE Medical Devices median
Gross margin 63.42% 44.56% 57.76%
Operating margin 23.98% 18.98% (15.07%)
Net margin 19.41% 13.41% (14.45%)
Free cash flow margin 21.52% 20.92% (3.88%)
Return on equity 37.67% 11.57% (10.35%)
Return on assets 14.43% 7.83% (17.26%)
Return on invested capital 39.00% 8.47% (5.27%)

Growth

Metric DXCM STE Medical Devices median
Revenue growth (TTM) 13.03% 8.12% 10.41%
EPS growth (last fiscal year) 47.18% 27.90% 28.17%
Revenue growth, 5-year CAGR 19.33% 13.82% 15.74%
Net income growth, 5-year CAGR 8.75% 14.51% 0.00%

Health

Metric DXCM STE Medical Devices median
Debt to equity 0.49 0.26 0.04
Current ratio 1.74 2.05 2.74
Net debt to EBITDA (0.65) 0.94 0.54

Dividend

Metric DXCM STE Medical Devices median
Dividend yield — 1.02% 1.02%
Payout ratio — 0.31 0.37

Size

Metric DXCM STE Medical Devices median
Market cap 31.50b 24.78b 239.53m

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