Natera, Inc. (NTRA) vs Thermo Fisher Scientific Inc. (TMO)

Natera, Inc. and Thermo Fisher Scientific Inc. are both Diagnostics & Research companies. Thermo Fisher Scientific Inc. is the larger, with a market value of $257.5B against $58.4B — 4.4× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Thermo Fisher Scientific Inc. trades at 37.1×. Natera, Inc. grew revenue faster over the last twelve months: 37.8% against 7.23%. Thermo Fisher Scientific Inc. has the higher net margin (15.0% vs −7.11%) and the higher return on invested capital (5.80% vs −22.3%). Across the 20 metrics below, Thermo Fisher Scientific Inc. leads on 15 and Natera, Inc. on 5.

Valuation

Metric NTRA TMO Diagnostics & Research median
P/E n/m 37.06 35.56
P/S 20.75 5.52 4.37
P/B 30.83 4.86 3.06
Price to free cash flow 667.04 34.77 35.76
EV/EBITDA n/m 26.25 24.35
EV/Sales 20.48 6.28 5.51
Earnings yield (0.35%) 2.70% (1.89%)
Free cash flow yield 0.15% 2.88% (0.15%)

Profitability

Metric NTRA TMO Diagnostics & Research median
Gross margin 65.23% 40.80% 50.89%
Operating margin (10.70%) 17.58% (8.57%)
Net margin (7.11%) 15.04% (6.37%)
Free cash flow margin 3.11% 15.89% 0.00%
Return on equity (12.54%) 13.51% (2.92%)
Return on assets (8.71%) 6.50% (6.71%)
Return on invested capital (22.34%) 5.80% 0.00%

Growth

Metric NTRA TMO Diagnostics & Research median
Revenue growth (TTM) 37.82% 7.23% 7.69%
EPS growth (last fiscal year) 0.65% 7.32% 25.92%
Revenue growth, 5-year CAGR 42.61% 6.70% 7.40%
Net income growth, 5-year CAGR 0.00% 1.01% 0.00%

Health

Metric NTRA TMO Diagnostics & Research median
Debt to equity 0.04 0.74 0.11
Current ratio 3.00 1.55 2.02
Net debt to EBITDA 3.74 2.45 0.70

Dividend

Metric NTRA TMO Diagnostics & Research median
Dividend yield — 0.27% 0.66%
Payout ratio — 0.10 0.20

Size

Metric NTRA TMO Diagnostics & Research median
Market cap 58.35b 257.53b 2.16b

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