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 $40.5B against $22.3B — 1.8× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Illumina, Inc. trades at 48.4×. 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 48.43 35.56
P/S 17.78 8.81 4.37
P/B n/m 13.94 3.06
Price to free cash flow n/m 43.19 35.76
EV/EBITDA n/m 34.96 24.35
EV/Sales 18.16 8.99 5.51
Earnings yield (2.20%) 2.06% (1.89%)
Free cash flow yield (1.23%) 2.32% (0.15%)

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% 25.92%
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) 0.70

Dividend

Metric GH ILMN Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric GH ILMN Diagnostics & Research median
Market cap 22.26b 40.46b 2.16b

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