Illumina, Inc. (ILMN) vs Natera, Inc. (NTRA)

Illumina, Inc. and Natera, Inc. are both Diagnostics & Research companies. Natera, Inc. is the larger, with a market value of $59.2B against $41.3B — 1.4× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Illumina, Inc. trades at 50.4×. Natera, Inc. grew revenue faster over the last twelve months: 37.8% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs −7.11%) and the higher return on invested capital (17.5% vs −22.3%). Across the 20 metrics below, Illumina, Inc. leads on 16 and Natera, Inc. on 4.

Valuation

Metric ILMN NTRA Diagnostics & Research median
P/E 50.39 n/m 33.95
P/S 9.16 21.84 4.87
P/B 14.50 32.45 3.12
Price to free cash flow 44.94 702.06 34.02
EV/EBITDA 35.99 n/m 25.20
EV/Sales 9.25 21.57 5.66
Earnings yield 1.98% (0.33%) (1.75%)
Free cash flow yield 2.23% 0.14% (0.13%)

Profitability

Metric ILMN NTRA Diagnostics & Research median
Gross margin 66.39% 65.23% 50.89%
Operating margin 19.65% (10.70%) (8.57%)
Net margin 18.36% (7.11%) (6.37%)
Free cash flow margin 20.72% 3.11% 0.00%
Return on equity 32.38% (12.54%) (2.92%)
Return on assets 12.95% (8.71%) (6.71%)
Return on invested capital 17.46% (22.34%) 0.00%

Growth

Metric ILMN NTRA Diagnostics & Research median
Revenue growth (TTM) 4.88% 37.82% 7.69%
EPS growth (last fiscal year) 170.87% 0.65% —
Revenue growth, 5-year CAGR 6.04% 42.61% 7.40%
Net income growth, 5-year CAGR 5.32% 0.00% 0.00%

Health

Metric ILMN NTRA Diagnostics & Research median
Debt to equity 0.53 0.04 0.11
Current ratio 1.80 3.00 2.02
Net debt to EBITDA (0.13) 3.74 0.78

Dividend

Metric ILMN NTRA Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric ILMN NTRA Diagnostics & Research median
Market cap 41.25b 59.17b 2.56b

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