Illumina, Inc. (ILMN) vs Thermo Fisher Scientific Inc. (TMO)

Illumina, Inc. and Thermo Fisher Scientific Inc. are both Diagnostics & Research companies. Thermo Fisher Scientific Inc. is the larger, with a market value of $257.5B against $40.5B — 6.4× the size. Thermo Fisher Scientific Inc. trades at the lower P/E: 37.1× against 48.4×. Thermo Fisher Scientific Inc. grew revenue faster over the last twelve months: 7.23% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs 15.0%) and the higher return on invested capital (17.5% vs 5.80%). Across the 22 metrics below, Illumina, Inc. leads on 12 and Thermo Fisher Scientific Inc. on 10.

Valuation

Metric ILMN TMO Diagnostics & Research median
P/E 48.43 37.06 35.56
P/S 8.81 5.52 4.37
P/B 13.94 4.86 3.06
Price to free cash flow 43.19 34.77 35.76
EV/EBITDA 34.96 26.25 24.35
EV/Sales 8.99 6.28 5.51
Earnings yield 2.06% 2.70% (1.89%)
Free cash flow yield 2.32% 2.88% (0.15%)

Profitability

Metric ILMN TMO Diagnostics & Research median
Gross margin 66.39% 40.80% 50.89%
Operating margin 19.65% 17.58% (8.57%)
Net margin 18.36% 15.04% (6.37%)
Free cash flow margin 20.72% 15.89% 0.00%
Return on equity 32.38% 13.51% (2.92%)
Return on assets 12.95% 6.50% (6.71%)
Return on invested capital 17.46% 5.80% 0.00%

Growth

Metric ILMN TMO Diagnostics & Research median
Revenue growth (TTM) 4.88% 7.23% 7.69%
EPS growth (last fiscal year) 170.87% 7.32% 25.92%
Revenue growth, 5-year CAGR 6.04% 6.70% 7.40%
Net income growth, 5-year CAGR 5.32% 1.01% 0.00%

Health

Metric ILMN TMO Diagnostics & Research median
Debt to equity 0.53 0.74 0.11
Current ratio 1.80 1.55 2.02
Net debt to EBITDA (0.13) 2.45 0.70

Dividend

Metric ILMN TMO Diagnostics & Research median
Dividend yield — 0.27% 0.66%
Payout ratio — 0.10 0.20

Size

Metric ILMN TMO Diagnostics & Research median
Market cap 40.46b 257.53b 2.16b

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