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 $31.5B against $20.6B — 1.5× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Illumina, Inc. trades at 35.6×. Guardant Health, Inc. grew revenue faster over the last twelve months: 41.7% against 5.83%. Illumina, Inc. has the higher net margin (19.7% vs −37.9%) and the higher return on invested capital (16.7% vs −25.7%). 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 35.62 34.52
P/S 16.20 6.98 4.24
P/B n/m 10.07 3.42
Price to free cash flow n/m 30.41 33.51
EV/EBITDA n/m 26.35 23.44
EV/Sales 16.55 7.19 5.18
Earnings yield (2.39%) 2.81% (1.50%)
Free cash flow yield (1.21%) 3.29% 0.00%

Profitability

Metric GH ILMN Diagnostics & Research median
Gross margin 65.19% 67.87% 48.32%
Operating margin (39.41%) 21.18% (5.68%)
Net margin (37.93%) 19.72% (4.10%)
Free cash flow margin (18.15%) 23.29% 0.00%
Return on equity 153.90% 32.39% 0.00%
Return on assets (30.68%) 13.78% (6.05%)
Return on invested capital (25.68%) 16.70% 0.00%

Growth

Metric GH ILMN Diagnostics & Research median
Revenue growth (TTM) 41.69% 5.83% 8.99%
EPS growth (last fiscal year) 6.74% 170.87% 20.36%
Revenue growth, 5-year CAGR 27.92% 6.04% 7.30%
Net income growth, 5-year CAGR 0.00% 5.32% 0.00%

Health

Metric GH ILMN Diagnostics & Research median
Debt to equity (5.45) 0.57 0.01
Current ratio 3.60 2.63 2.27
Net debt to EBITDA (0.75) (0.13) 0.68

Dividend

Metric GH ILMN Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric GH ILMN Diagnostics & Research median
Market cap 20.59b 31.45b 2.22b

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