IDEXX Laboratories, Inc. (IDXX) vs Waters Corporation (WAT)

IDEXX Laboratories, Inc. and Waters Corporation are both Diagnostics & Research companies. IDEXX Laboratories, Inc. and Waters Corporation are of similar size ($42.3B and $40.2B). IDEXX Laboratories, Inc. trades at the lower P/E: 36.2× against 108×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 12.8%. IDEXX Laboratories, Inc. has the higher net margin (25.0% vs 3.59%) and the higher return on invested capital (48.9% vs 1.05%). Across the 22 metrics below, IDEXX Laboratories, Inc. leads on 19 and Waters Corporation on 3.

Valuation

Metric IDXX WAT Diagnostics & Research median
P/E 36.24 107.97 33.95
P/S 9.00 9.18 4.87
P/B 25.42 2.81 3.12
Price to free cash flow 33.14 116.27 34.02
EV/EBITDA 25.58 49.82 25.20
EV/Sales 9.06 10.11 5.66
Earnings yield 2.76% 0.93% (1.75%)
Free cash flow yield 3.02% 0.86% (0.13%)

Profitability

Metric IDXX WAT Diagnostics & Research median
Gross margin 62.45% 50.89% 50.89%
Operating margin 32.03% 7.10% (8.57%)
Net margin 25.03% 3.59% (6.37%)
Free cash flow margin 27.17% 7.89% 0.00%
Return on equity 74.21% 1.92% (2.92%)
Return on assets 33.65% 1.13% (6.71%)
Return on invested capital 48.87% 1.05% 0.00%

Growth

Metric IDXX WAT Diagnostics & Research median
Revenue growth (TTM) 12.77% 52.47% 7.69%
EPS growth (last fiscal year) 22.59% 0.47% —
Revenue growth, 5-year CAGR 9.72% 6.00% 7.40%
Net income growth, 5-year CAGR 12.74% 4.26% 0.00%

Health

Metric IDXX WAT Diagnostics & Research median
Debt to equity 0.28 0.32 0.11
Current ratio 1.17 1.86 2.02
Net debt to EBITDA 0.18 0.36 0.78

Dividend

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

Size

Metric IDXX WAT Diagnostics & Research median
Market cap 40.18b 42.28b 2.56b

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