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 ($43.6B and $43.1B). IDEXX Laboratories, Inc. trades at the lower P/E: 39.1× against 109×. 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 18 and Waters Corporation on 4.

Valuation

Metric IDXX WAT Diagnostics & Research median
P/E 39.10 108.69 35.56
P/S 9.72 9.24 4.37
P/B 27.44 2.82 3.06
Price to free cash flow 35.76 117.05 35.76
EV/EBITDA 27.59 50.12 24.35
EV/Sales 9.77 10.18 5.51
Earnings yield 2.56% 0.92% (1.89%)
Free cash flow yield 2.80% 0.85% (0.15%)

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% 25.92%
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 0.70

Dividend

Metric IDXX WAT Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric IDXX WAT Diagnostics & Research median
Market cap 43.11b 43.64b 2.16b

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