Edwards Lifesciences Corporation (EW) vs GE HealthCare Technologies Inc. (GEHC)

Edwards Lifesciences Corporation and GE HealthCare Technologies Inc. are both Medical Devices companies. Edwards Lifesciences Corporation is the larger, with a market value of $58.1B against $37.9B — 1.5× the size. GE HealthCare Technologies Inc. trades at the lower P/E: 17.3× against 57.8×. Edwards Lifesciences Corporation grew revenue faster over the last twelve months: 13.4% against 6.87%. Edwards Lifesciences Corporation has the higher net margin (15.3% vs 9.95%) and the higher return on invested capital (13.0% vs 8.86%). Across the 22 metrics below, Edwards Lifesciences Corporation leads on 12 and GE HealthCare Technologies Inc. on 10.

Valuation

Metric EW GEHC Medical Devices median
P/E 57.82 17.32 24.94
P/S 8.80 1.72 2.66
P/B 5.36 3.20 2.36
Price to free cash flow 42.14 19.71 28.12
EV/EBITDA 34.30 13.11 11.42
EV/Sales 8.29 2.13 2.76
Earnings yield 1.73% 5.78% (12.66%)
Free cash flow yield 2.37% 5.07% (7.18%)

Profitability

Metric EW GEHC Medical Devices median
Gross margin 78.02% 39.95% 57.76%
Operating margin 21.59% 13.34% (14.84%)
Net margin 15.30% 9.95% (14.45%)
Free cash flow margin 21.34% 8.73% (5.70%)
Return on equity 9.65% 19.89% (10.56%)
Return on assets 7.45% 5.78% (17.26%)
Return on invested capital 13.02% 8.86% (5.22%)

Growth

Metric EW GEHC Medical Devices median
Revenue growth (TTM) 13.44% 6.87% 10.41%
EPS growth (last fiscal year) (73.74%) 4.84% 28.17%
Revenue growth, 5-year CAGR 6.70% 3.74% 15.74%
Net income growth, 5-year CAGR 5.45% (31.53%) 0.00%

Health

Metric EW GEHC Medical Devices median
Debt to equity 0.05 1.00 0.04
Current ratio 4.60 1.30 2.67
Net debt to EBITDA (2.55) 2.14 0.54

Dividend

Metric EW GEHC Medical Devices median
Dividend yield — 0.18% 1.02%
Payout ratio — 0.03 0.38

Size

Metric EW GEHC Medical Devices median
Market cap 58.11b 37.87b 221.84m

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