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

Illumina, Inc. and Waters Corporation are both Diagnostics & Research companies. Illumina, Inc. and Waters Corporation are of similar size ($42.3B and $41.3B). Illumina, Inc. trades at the lower P/E: 50.4× against 108×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 4.88%. Illumina, Inc. has the higher net margin (18.4% vs 3.59%) and the higher return on invested capital (17.5% vs 1.05%). Across the 22 metrics below, Illumina, Inc. leads on 18 and Waters Corporation on 4.

Valuation

Metric ILMN WAT Diagnostics & Research median
P/E 50.39 107.97 33.95
P/S 9.16 9.18 4.87
P/B 14.50 2.81 3.12
Price to free cash flow 44.94 116.27 34.02
EV/EBITDA 35.99 49.82 25.20
EV/Sales 9.25 10.11 5.66
Earnings yield 1.98% 0.93% (1.75%)
Free cash flow yield 2.23% 0.86% (0.13%)

Profitability

Metric ILMN WAT Diagnostics & Research median
Gross margin 66.39% 50.89% 50.89%
Operating margin 19.65% 7.10% (8.57%)
Net margin 18.36% 3.59% (6.37%)
Free cash flow margin 20.72% 7.89% 0.00%
Return on equity 32.38% 1.92% (2.92%)
Return on assets 12.95% 1.13% (6.71%)
Return on invested capital 17.46% 1.05% 0.00%

Growth

Metric ILMN WAT Diagnostics & Research median
Revenue growth (TTM) 4.88% 52.47% 7.69%
EPS growth (last fiscal year) 170.87% 0.47% —
Revenue growth, 5-year CAGR 6.04% 6.00% 7.40%
Net income growth, 5-year CAGR 5.32% 4.26% 0.00%

Health

Metric ILMN WAT Diagnostics & Research median
Debt to equity 0.53 0.32 0.11
Current ratio 1.80 1.86 2.02
Net debt to EBITDA (0.13) 0.36 0.78

Dividend

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

Size

Metric ILMN WAT Diagnostics & Research median
Market cap 41.25b 42.28b 2.56b

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