Labcorp Holdings Inc. (LH) vs Natera, Inc. (NTRA)

Labcorp Holdings Inc. and Natera, Inc. are both Diagnostics & Research companies. Natera, Inc. is the larger, with a market value of $52.4B against $29.5B — 1.8× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Labcorp Holdings Inc. trades at 29.5×. Natera, Inc. grew revenue faster over the last twelve months: 37.4% against 6.02%. Labcorp Holdings Inc. has the higher net margin (6.88% vs −5.66%) and the higher return on invested capital (6.76% vs −8.35%). Across the 20 metrics below, Labcorp Holdings Inc. leads on 15 and Natera, Inc. on 5.

Valuation

Metric LH NTRA Diagnostics & Research median
P/E 29.53 n/m 34.52
P/S 2.01 18.12 4.24
P/B 3.32 28.19 3.42
Price to free cash flow 25.40 1,004.35 33.51
EV/EBITDA 15.61 n/m 23.44
EV/Sales 2.36 17.87 5.18
Earnings yield 3.39% (0.31%) (1.50%)
Free cash flow yield 3.94% 0.10% 0.00%

Profitability

Metric LH NTRA Diagnostics & Research median
Gross margin 28.96% 0.00% 48.32%
Operating margin 10.29% (8.95%) (5.68%)
Net margin 6.88% (5.66%) (4.10%)
Free cash flow margin 8.87% 1.80% 0.00%
Return on equity 11.45% (10.55%) 0.00%
Return on assets 5.40% (7.21%) (6.05%)
Return on invested capital 6.76% (8.35%) 0.00%

Growth

Metric LH NTRA Diagnostics & Research median
Revenue growth (TTM) 6.02% 37.43% 8.99%
EPS growth (last fiscal year) 18.33% 0.65% 20.36%
Revenue growth, 5-year CAGR (0.04%) 42.61% 7.30%
Net income growth, 5-year CAGR (10.85%) 0.00% 0.00%

Health

Metric LH NTRA Diagnostics & Research median
Debt to equity 0.60 0.04 0.01
Current ratio 1.41 2.81 2.27
Net debt to EBITDA 2.23 3.74 0.68

Dividend

Metric LH NTRA Diagnostics & Research median
Dividend yield 0.79% — 0.67%
Payout ratio 0.24 — 0.20

Size

Metric LH NTRA Diagnostics & Research median
Market cap 29.50b 52.43b 2.22b

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