Guardant Health, Inc. (GH) vs Illumina, Inc. (ILMN)

Guardant Health, Inc. and Illumina, Inc. are both Diagnostics & Research companies. Illumina, Inc. is the larger, with a market value of $41.3B against $23.9B — 1.7× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Illumina, Inc. trades at 50.4×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs −38.3%) and the higher return on invested capital (17.5% vs −129.7%). Across the 18 metrics below, Illumina, Inc. leads on 12 and Guardant Health, Inc. on 6.

Valuation

Metric GH ILMN Diagnostics & Research median
P/E n/m 50.39 33.95
P/S 19.91 9.16 4.87
P/B n/m 14.50 3.12
Price to free cash flow n/m 44.94 34.02
EV/EBITDA n/m 35.99 25.20
EV/Sales 20.29 9.25 5.66
Earnings yield (1.97%) 1.98% (1.75%)
Free cash flow yield (1.10%) 2.23% (0.13%)

Profitability

Metric GH ILMN Diagnostics & Research median
Gross margin 65.01% 66.39% 50.89%
Operating margin (39.75%) 19.65% (8.57%)
Net margin (38.33%) 18.36% (6.37%)
Free cash flow margin (20.35%) 20.72% 0.00%
Return on equity 171.64% 32.38% (2.92%)
Return on assets (27.95%) 12.95% (6.71%)
Return on invested capital (129.70%) 17.46% 0.00%

Growth

Metric GH ILMN Diagnostics & Research median
Revenue growth (TTM) 42.74% 4.88% 7.69%
EPS growth (last fiscal year) 6.74% 170.87% —
Revenue growth, 5-year CAGR 27.92% 6.04% 7.40%
Net income growth, 5-year CAGR 0.00% 5.32% 0.00%

Health

Metric GH ILMN Diagnostics & Research median
Debt to equity (6.74) 0.53 0.11
Current ratio 4.03 1.80 2.02
Net debt to EBITDA (0.75) (0.13) 0.78

Dividend

Metric GH ILMN Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric GH ILMN Diagnostics & Research median
Market cap 23.94b 41.25b 2.56b

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