InMode Ltd. (INMD) vs VAREX IMAGING (VREX)

InMode Ltd. and VAREX IMAGING are both Medical Devices companies. InMode Ltd. and VAREX IMAGING are of similar size ($815.7M and $784.3M). InMode Ltd. trades at the lower P/E: 11.4× against 34.8×. VAREX IMAGING grew revenue faster over the last twelve months: 5.31% against −6.71%. InMode Ltd. has the higher net margin (20.7% vs 2.55%) and the higher return on invested capital (33.8% vs 5.95%). Across the 21 metrics below, InMode Ltd. leads on 18 and VAREX IMAGING on 3.

Valuation

Metric INMD VREX Medical Devices median
P/E 11.41 34.81 22.18
P/S 2.24 0.90 2.70
P/B 1.23 1.52 2.46
Price to free cash flow 10.18 n/m 22.53
EV/EBITDA 4.85 10.15 11.78
EV/Sales 0.90 1.18 2.38
Earnings yield 8.77% 2.87% (8.22%)
Free cash flow yield 9.83% (2.60%) (7.80%)

Profitability

Metric INMD VREX Medical Devices median
Gross margin 76.52% 34.32% 56.01%
Operating margin 18.47% 8.35% (15.03%)
Net margin 20.69% 2.55% (20.40%)
Free cash flow margin 22.03% (2.34%) (7.24%)
Return on equity 0.00% 4.51% (15.32%)
Return on assets 10.85% 2.03% (19.72%)
Return on invested capital 33.78% 5.95% (10.33%)

Growth

Metric INMD VREX Medical Devices median
Revenue growth (TTM) (6.71%) 5.31% 8.80%
EPS growth (last fiscal year) (36.44%) (45.30%) —
Revenue growth, 5-year CAGR 12.44% 2.73% 15.23%
Net income growth, 5-year CAGR 4.57% 0.00% 0.00%

Health

Metric INMD VREX Medical Devices median
Debt to equity 0.00 0.68 0.07
Current ratio 8.18 3.38 2.50
Net debt to EBITDA (6.45) 2.21 0.49

Dividend

Metric INMD VREX Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric INMD VREX Medical Devices median
Market cap 815.65m 784.30m 172.91m

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