Illumina, Inc. (ILMN) vs Waters Corporation (WAT)

Illumina, Inc. and Waters Corporation are both Diagnostics & Research companies. Waters Corporation is the larger, with a market value of $44.5B against $31.5B — 1.4× the size. Illumina, Inc. trades at the lower P/E: 35.6× against 194×. Waters Corporation grew revenue faster over the last twelve months: 80.7% against 5.83%. Illumina, Inc. has the higher net margin (19.7% vs 1.76%) and the higher return on invested capital (16.7% vs 1.13%). Across the 22 metrics below, Illumina, Inc. leads on 19 and Waters Corporation on 3.

Valuation

Metric ILMN WAT Diagnostics & Research median
P/E 35.62 193.97 34.52
P/S 6.98 7.96 4.24
P/B 10.07 2.94 3.42
Price to free cash flow 30.41 172.93 33.51
EV/EBITDA 26.35 51.94 23.44
EV/Sales 7.19 8.73 5.18
Earnings yield 2.81% 0.52% (1.50%)
Free cash flow yield 3.29% 0.58% 0.00%

Profitability

Metric ILMN WAT Diagnostics & Research median
Gross margin 67.87% 49.53% 48.32%
Operating margin 21.18% 4.73% (5.68%)
Net margin 19.72% 1.76% (4.10%)
Free cash flow margin 23.29% 4.60% 0.00%
Return on equity 32.39% 0.00% 0.00%
Return on assets 13.78% 0.68% (6.05%)
Return on invested capital 16.70% 1.13% 0.00%

Growth

Metric ILMN WAT Diagnostics & Research median
Revenue growth (TTM) 5.83% 80.69% 8.99%
EPS growth (last fiscal year) 170.87% 0.47% 20.36%
Revenue growth, 5-year CAGR 6.04% 6.00% 7.30%
Net income growth, 5-year CAGR 5.32% 4.26% 0.00%

Health

Metric ILMN WAT Diagnostics & Research median
Debt to equity 0.57 0.00 0.01
Current ratio 2.63 0.66 2.27
Net debt to EBITDA (0.13) 0.36 0.68

Dividend

Metric ILMN WAT Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric ILMN WAT Diagnostics & Research median
Market cap 31.45b 44.51b 2.22b

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