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 $52.4B against $44.5B — 1.2× the size. Natera, Inc. has negative trailing earnings, so its P/E is not meaningful; Waters Corporation trades at 194×. Waters Corporation grew revenue faster over the last twelve months: 80.7% against 37.4%. Waters Corporation has the higher net margin (1.76% vs −5.66%) and the higher return on invested capital (1.13% vs −8.35%). Across the 20 metrics below, Waters Corporation leads on 17 and Natera, Inc. on 3.

Valuation

Metric NTRA WAT Diagnostics & Research median
P/E n/m 193.97 34.52
P/S 18.12 7.96 4.24
P/B 28.19 2.94 3.42
Price to free cash flow 1,004.35 172.93 33.51
EV/EBITDA n/m 51.94 23.44
EV/Sales 17.87 8.73 5.18
Earnings yield (0.31%) 0.52% (1.50%)
Free cash flow yield 0.10% 0.58% 0.00%

Profitability

Metric NTRA WAT Diagnostics & Research median
Gross margin 0.00% 49.53% 48.32%
Operating margin (8.95%) 4.73% (5.68%)
Net margin (5.66%) 1.76% (4.10%)
Free cash flow margin 1.80% 4.60% 0.00%
Return on equity (10.55%) 0.00% 0.00%
Return on assets (7.21%) 0.68% (6.05%)
Return on invested capital (8.35%) 1.13% 0.00%

Growth

Metric NTRA WAT Diagnostics & Research median
Revenue growth (TTM) 37.43% 80.69% 8.99%
EPS growth (last fiscal year) 0.65% 0.47% 20.36%
Revenue growth, 5-year CAGR 42.61% 6.00% 7.30%
Net income growth, 5-year CAGR 0.00% 4.26% 0.00%

Health

Metric NTRA WAT Diagnostics & Research median
Debt to equity 0.04 0.00 0.01
Current ratio 2.81 0.66 2.27
Net debt to EBITDA 3.74 0.36 0.68

Dividend

Metric NTRA WAT Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric NTRA WAT Diagnostics & Research median
Market cap 52.43b 44.51b 2.22b

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