Natera, Inc. (NTRA) vs Waters Corporation (WAT)

Natera, Inc. and Waters Corporation are both Diagnostics & Research companies. Natera, Inc. is the larger, with a market value of $58.4B against $43.6B — 1.3× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Waters Corporation trades at 109×. Waters Corporation grew revenue faster over the last twelve months: 52.5% against 37.8%. Waters Corporation has the higher net margin (3.59% vs −7.11%) and the higher return on invested capital (1.05% vs −22.3%). Across the 20 metrics below, Waters Corporation leads on 15 and Natera, Inc. on 5.

Valuation

Metric NTRA WAT Diagnostics & Research median
P/E n/m 108.69 35.56
P/S 20.75 9.24 4.37
P/B 30.83 2.82 3.06
Price to free cash flow 667.04 117.05 35.76
EV/EBITDA n/m 50.12 24.35
EV/Sales 20.48 10.18 5.51
Earnings yield (0.35%) 0.92% (1.89%)
Free cash flow yield 0.15% 0.85% (0.15%)

Profitability

Metric NTRA WAT Diagnostics & Research median
Gross margin 65.23% 50.89% 50.89%
Operating margin (10.70%) 7.10% (8.57%)
Net margin (7.11%) 3.59% (6.37%)
Free cash flow margin 3.11% 7.89% 0.00%
Return on equity (12.54%) 1.92% (2.92%)
Return on assets (8.71%) 1.13% (6.71%)
Return on invested capital (22.34%) 1.05% 0.00%

Growth

Metric NTRA WAT Diagnostics & Research median
Revenue growth (TTM) 37.82% 52.47% 7.69%
EPS growth (last fiscal year) 0.65% 0.47% 25.92%
Revenue growth, 5-year CAGR 42.61% 6.00% 7.40%
Net income growth, 5-year CAGR 0.00% 4.26% 0.00%

Health

Metric NTRA WAT Diagnostics & Research median
Debt to equity 0.04 0.32 0.11
Current ratio 3.00 1.86 2.02
Net debt to EBITDA 3.74 0.36 0.70

Dividend

Metric NTRA WAT Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric NTRA WAT Diagnostics & Research median
Market cap 58.35b 43.64b 2.16b

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