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 ($43.6B and $40.5B). Illumina, Inc. trades at the lower P/E: 48.4× against 109×. 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 48.43 108.69 35.56
P/S 8.81 9.24 4.37
P/B 13.94 2.82 3.06
Price to free cash flow 43.19 117.05 35.76
EV/EBITDA 34.96 50.12 24.35
EV/Sales 8.99 10.18 5.51
Earnings yield 2.06% 0.92% (1.89%)
Free cash flow yield 2.32% 0.85% (0.15%)

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% 25.92%
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 0.70

Dividend

Metric ILMN WAT Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric ILMN WAT Diagnostics & Research median
Market cap 40.46b 43.64b 2.16b

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