Illumina, Inc. (ILMN) vs Labcorp Holdings Inc. (LH)

Illumina, Inc. and Labcorp Holdings Inc. are both Diagnostics & Research companies. Illumina, Inc. is the larger, with a market value of $40.5B against $26.4B — 1.5× the size. Labcorp Holdings Inc. trades at the lower P/E: 26.2× against 48.4×. Labcorp Holdings Inc. grew revenue faster over the last twelve months: 6.41% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs 6.99%) and the higher return on invested capital (17.5% vs 6.50%). Across the 22 metrics below, Illumina, Inc. leads on 13 and Labcorp Holdings Inc. on 9.

Valuation

Metric ILMN LH Diagnostics & Research median
P/E 48.43 26.18 35.56
P/S 8.81 1.81 4.37
P/B 13.94 3.02 3.06
Price to free cash flow 43.19 25.22 35.76
EV/EBITDA 34.96 14.51 24.35
EV/Sales 8.99 2.22 5.51
Earnings yield 2.06% 3.82% (1.89%)
Free cash flow yield 2.32% 3.97% (0.15%)

Profitability

Metric ILMN LH Diagnostics & Research median
Gross margin 66.39% 28.88% 50.89%
Operating margin 19.65% 10.43% (8.57%)
Net margin 18.36% 6.99% (6.37%)
Free cash flow margin 20.72% 8.16% 0.00%
Return on equity 32.38% 11.74% (2.92%)
Return on assets 12.95% 5.48% (6.71%)
Return on invested capital 17.46% 6.50% 0.00%

Growth

Metric ILMN LH Diagnostics & Research median
Revenue growth (TTM) 4.88% 6.41% 7.69%
EPS growth (last fiscal year) 170.87% 18.33% 25.92%
Revenue growth, 5-year CAGR 6.04% (0.04%) 7.40%
Net income growth, 5-year CAGR 5.32% (10.85%) 0.00%

Health

Metric ILMN LH Diagnostics & Research median
Debt to equity 0.53 0.69 0.11
Current ratio 1.80 1.80 2.02
Net debt to EBITDA (0.13) 2.23 0.70

Dividend

Metric ILMN LH Diagnostics & Research median
Dividend yield — 0.90% 0.66%
Payout ratio — 0.24 0.20

Size

Metric ILMN LH Diagnostics & Research median
Market cap 40.46b 26.36b 2.16b

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