Intuitive Surgical, Inc. (ISRG) vs West Pharmaceutical Services, Inc. (WST)

Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. Intuitive Surgical, Inc. is the larger, with a market value of $151.2B against $27.0B — 5.6× the size. Intuitive Surgical, Inc. trades at the lower P/E: 48.3× against 48.7×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.7% against 12.4%. Intuitive Surgical, Inc. has the higher net margin (28.5% vs 17.0%) and the higher return on invested capital (16.5% vs 15.4%). Across the 22 metrics below, Intuitive Surgical, Inc. leads on 18 and West Pharmaceutical Services, Inc. on 4.

Valuation

Metric ISRG WST Medical Instruments & Supplies median
P/E 48.27 48.66 33.75
P/S 13.69 8.15 2.52
P/B 8.26 9.07 2.48
Price to free cash flow 46.23 62.60 25.19
EV/EBITDA 34.29 31.19 14.62
EV/Sales 13.22 8.08 2.88
Earnings yield 2.07% 2.06% (2.67%)
Free cash flow yield 2.16% 1.60% 0.09%

Profitability

Metric ISRG WST Medical Instruments & Supplies median
Gross margin 66.68% 36.79% 54.29%
Operating margin 31.28% 20.45% 1.07%
Net margin 28.45% 16.98% (1.61%)
Free cash flow margin 29.62% 13.13% 1.08%
Return on equity 17.32% 19.09% (1.32%)
Return on assets 15.30% 14.07% 0.00%
Return on invested capital 16.49% 15.42% 0.00%

Growth

Metric ISRG WST Medical Instruments & Supplies median
Revenue growth (TTM) 20.66% 12.38% 8.85%
EPS growth (last fiscal year) 22.59% 1.49% 8.65%
Revenue growth, 5-year CAGR 18.22% 7.44% 9.17%
Net income growth, 5-year CAGR 21.91% 7.36% 0.00%

Health

Metric ISRG WST Medical Instruments & Supplies median
Debt to equity 0.00 0.07 0.10
Current ratio 4.96 2.82 2.48
Net debt to EBITDA (1.64) (0.78) 0.89

Dividend

Metric ISRG WST Medical Instruments & Supplies median
Dividend yield — 0.23% 1.11%
Payout ratio — 0.11 0.27

Size

Metric ISRG WST Medical Instruments & Supplies median
Market cap 151.15b 26.96b 619.84m

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