Edwards Lifesciences Corporation (EW) vs Medtronic PLC (MDT)

Edwards Lifesciences Corporation and Medtronic PLC are both Medical Devices companies. Medtronic PLC is the larger, with a market value of $112.2B against $49.4B — 2.3× the size. Medtronic PLC trades at the lower P/E: 21.7× against 49.6×. Edwards Lifesciences Corporation grew revenue faster over the last twelve months: 14.6% against 9.77%. Edwards Lifesciences Corporation has the higher net margin (15.4% vs 13.9%) and the higher return on invested capital (12.8% vs 6.04%). Across the 22 metrics below, Edwards Lifesciences Corporation leads on 11 and Medtronic PLC on 11.

Valuation

Metric EW MDT Medical Devices median
P/E 49.59 21.73 22.18
P/S 7.64 3.02 2.70
P/B 4.64 2.23 2.46
Price to free cash flow 35.44 18.50 22.53
EV/EBITDA 28.56 13.65 11.78
EV/Sales 7.08 3.54 2.38
Earnings yield 2.02% 4.60% (8.22%)
Free cash flow yield 2.82% 5.41% (7.80%)

Profitability

Metric EW MDT Medical Devices median
Gross margin 77.84% 65.01% 56.01%
Operating margin 22.25% 18.08% (15.03%)
Net margin 15.43% 13.93% (20.40%)
Free cash flow margin 22.01% 16.33% (7.24%)
Return on equity 9.42% 10.57% (15.32%)
Return on assets 7.35% 5.68% (19.72%)
Return on invested capital 12.81% 6.04% (10.33%)

Growth

Metric EW MDT Medical Devices median
Revenue growth (TTM) 14.55% 9.77% 8.80%
EPS growth (last fiscal year) (73.74%) 3.32% —
Revenue growth, 5-year CAGR 6.70% 3.84% 15.23%
Net income growth, 5-year CAGR 5.45% 5.89% 0.00%

Health

Metric EW MDT Medical Devices median
Debt to equity 0.06 0.55 0.07
Current ratio 4.52 2.07 2.50
Net debt to EBITDA (2.55) 1.99 0.49

Dividend

Metric EW MDT Medical Devices median
Dividend yield — 3.07% 0.94%
Payout ratio 0.00 1.01 0.00

Size

Metric EW MDT Medical Devices median
Market cap 49.41b 112.17b 172.91m

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