IQVIA Holdings Inc. (IQV) vs Waters Corporation (WAT)

IQVIA Holdings Inc. and Waters Corporation are both Diagnostics & Research companies. IQVIA Holdings Inc. and Waters Corporation are of similar size ($45.3B and $42.3B). IQVIA Holdings Inc. trades at the lower P/E: 33.3× against 108×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 8.17%. IQVIA Holdings Inc. has the higher net margin (8.10% vs 3.59%) and the higher return on invested capital (6.80% vs 1.05%). Across the 22 metrics below, IQVIA Holdings Inc. leads on 16 and Waters Corporation on 6.

Valuation

Metric IQV WAT Diagnostics & Research median
P/E 33.26 107.97 33.95
P/S 2.64 9.18 4.87
P/B 7.13 2.81 3.12
Price to free cash flow 19.88 116.27 34.02
EV/EBITDA 17.27 49.82 25.20
EV/Sales 3.46 10.11 5.66
Earnings yield 3.01% 0.93% (1.75%)
Free cash flow yield 5.03% 0.86% (0.13%)

Profitability

Metric IQV WAT Diagnostics & Research median
Gross margin 32.97% 50.89% 50.89%
Operating margin 12.95% 7.10% (8.57%)
Net margin 8.10% 3.59% (6.37%)
Free cash flow margin 13.30% 7.89% 0.00%
Return on equity 22.75% 1.92% (2.92%)
Return on assets 4.70% 1.13% (6.71%)
Return on invested capital 6.80% 1.05% 0.00%

Growth

Metric IQV WAT Diagnostics & Research median
Revenue growth (TTM) 8.17% 52.47% 7.69%
EPS growth (last fiscal year) 4.67% 0.47% —
Revenue growth, 5-year CAGR 7.50% 6.00% 7.40%
Net income growth, 5-year CAGR 37.27% 4.26% 0.00%

Health

Metric IQV WAT Diagnostics & Research median
Debt to equity 2.54 0.32 0.11
Current ratio 0.71 1.86 2.02
Net debt to EBITDA 4.06 0.36 0.78

Dividend

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

Size

Metric IQV WAT Diagnostics & Research median
Market cap 45.27b 42.28b 2.56b

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