Labcorp Holdings Inc. (LH) vs Twist Bioscience Corporation (TWST)

Labcorp Holdings Inc. and Twist Bioscience Corporation are both Diagnostics & Research companies. Labcorp Holdings Inc. is the larger, with a market value of $21.9B against $12.4B — 1.8× the size. Twist Bioscience Corporation has negative trailing earnings, so its P/E is not meaningful; Labcorp Holdings Inc. trades at 25.4×. Twist Bioscience Corporation grew revenue faster over the last twelve months: 19.2% against 6.41%. Labcorp Holdings Inc. has the higher net margin (6.99% vs −31.7%) and the higher return on invested capital (6.50% vs −30.8%). Across the 19 metrics below, Labcorp Holdings Inc. leads on 11 and Twist Bioscience Corporation on 8.

Valuation

Metric LH TWST Diagnostics & Research median
P/E 25.44 n/m 33.95
P/S 1.76 26.49 4.87
P/B 2.94 25.66 3.12
Price to free cash flow 24.51 n/m 34.02
EV/EBITDA 14.70 n/m 25.20
EV/Sales 2.25 26.18 5.66
Earnings yield 3.93% (1.21%) (1.75%)
Free cash flow yield 4.08% (0.84%) (0.13%)

Profitability

Metric LH TWST Diagnostics & Research median
Gross margin 28.88% 51.97% 50.89%
Operating margin 10.43% (33.58%) (8.57%)
Net margin 6.99% (31.66%) (6.37%)
Free cash flow margin 8.16% (22.15%) 0.00%
Return on equity 11.74% (29.59%) (2.92%)
Return on assets 5.48% (20.78%) (6.71%)
Return on invested capital 6.50% (30.83%) 0.00%

Growth

Metric LH TWST Diagnostics & Research median
Revenue growth (TTM) 6.41% 19.19% 7.69%
EPS growth (last fiscal year) 18.33% 63.89% —
Revenue growth, 5-year CAGR (0.04%) 33.11% 7.40%
Net income growth, 5-year CAGR (10.85%) 0.00% 0.00%

Health

Metric LH TWST Diagnostics & Research median
Debt to equity 0.69 0.03 0.11
Current ratio 1.80 2.67 2.02
Net debt to EBITDA 2.23 1.95 0.78

Dividend

Metric LH TWST Diagnostics & Research median
Dividend yield 0.98% — 0.70%
Payout ratio 0.27 0.00 0.00

Size

Metric LH TWST Diagnostics & Research median
Market cap 21.86b 12.39b 2.56b

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