Guardant Health, Inc. (GH) vs Waters Corporation (WAT)

Guardant Health, Inc. and Waters Corporation are both Diagnostics & Research companies. Waters Corporation is the larger, with a market value of $42.3B against $23.9B — 1.8× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Waters Corporation trades at 108×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 42.7%. Waters Corporation has the higher net margin (3.59% vs −38.3%) and the higher return on invested capital (1.05% vs −129.7%). Across the 18 metrics below, Waters Corporation leads on 11 and Guardant Health, Inc. on 7.

Valuation

Metric GH WAT Diagnostics & Research median
P/E n/m 107.97 33.95
P/S 19.91 9.18 4.87
P/B n/m 2.81 3.12
Price to free cash flow n/m 116.27 34.02
EV/EBITDA n/m 49.82 25.20
EV/Sales 20.29 10.11 5.66
Earnings yield (1.97%) 0.93% (1.75%)
Free cash flow yield (1.10%) 0.86% (0.13%)

Profitability

Metric GH WAT Diagnostics & Research median
Gross margin 65.01% 50.89% 50.89%
Operating margin (39.75%) 7.10% (8.57%)
Net margin (38.33%) 3.59% (6.37%)
Free cash flow margin (20.35%) 7.89% 0.00%
Return on equity 171.64% 1.92% (2.92%)
Return on assets (27.95%) 1.13% (6.71%)
Return on invested capital (129.70%) 1.05% 0.00%

Growth

Metric GH WAT Diagnostics & Research median
Revenue growth (TTM) 42.74% 52.47% 7.69%
EPS growth (last fiscal year) 6.74% 0.47% —
Revenue growth, 5-year CAGR 27.92% 6.00% 7.40%
Net income growth, 5-year CAGR 0.00% 4.26% 0.00%

Health

Metric GH WAT Diagnostics & Research median
Debt to equity (6.74) 0.32 0.11
Current ratio 4.03 1.86 2.02
Net debt to EBITDA (0.75) 0.36 0.78

Dividend

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

Size

Metric GH WAT Diagnostics & Research median
Market cap 23.94b 42.28b 2.56b

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