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

Illumina, Inc. and Labcorp Holdings Inc. are both Diagnostics & Research companies. Illumina, Inc. and Labcorp Holdings Inc. are of similar size ($31.5B and $29.5B). Labcorp Holdings Inc. trades at the lower P/E: 29.5× against 35.6×. Labcorp Holdings Inc. grew revenue faster over the last twelve months: 6.02% against 5.83%. Illumina, Inc. has the higher net margin (19.7% vs 6.88%) and the higher return on invested capital (16.7% vs 6.76%). 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 35.62 29.53 34.52
P/S 6.98 2.01 4.24
P/B 10.07 3.32 3.42
Price to free cash flow 30.41 25.40 33.51
EV/EBITDA 26.35 15.61 23.44
EV/Sales 7.19 2.36 5.18
Earnings yield 2.81% 3.39% (1.50%)
Free cash flow yield 3.29% 3.94% 0.00%

Profitability

Metric ILMN LH Diagnostics & Research median
Gross margin 67.87% 28.96% 48.32%
Operating margin 21.18% 10.29% (5.68%)
Net margin 19.72% 6.88% (4.10%)
Free cash flow margin 23.29% 8.87% 0.00%
Return on equity 32.39% 11.45% 0.00%
Return on assets 13.78% 5.40% (6.05%)
Return on invested capital 16.70% 6.76% 0.00%

Growth

Metric ILMN LH Diagnostics & Research median
Revenue growth (TTM) 5.83% 6.02% 8.99%
EPS growth (last fiscal year) 170.87% 18.33% 20.36%
Revenue growth, 5-year CAGR 6.04% (0.04%) 7.30%
Net income growth, 5-year CAGR 5.32% (10.85%) 0.00%

Health

Metric ILMN LH Diagnostics & Research median
Debt to equity 0.57 0.60 0.01
Current ratio 2.63 1.41 2.27
Net debt to EBITDA (0.13) 2.23 0.68

Dividend

Metric ILMN LH Diagnostics & Research median
Dividend yield — 0.79% 0.67%
Payout ratio — 0.24 0.20

Size

Metric ILMN LH Diagnostics & Research median
Market cap 31.45b 29.50b 2.22b

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