Reviewing Edwards Lifesciences Corporation (EW) and Illumina (ILMN)

Edwards Lifesciences Corporation (NYSE: EW) and Illumina (NASDAQ:ILMN) are both large-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Edwards Lifesciences Corporation and Illumina’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Edwards Lifesciences Corporation $3.23 billion 7.23 $1.05 billion $3.30 33.53
Illumina $2.49 billion 11.81 $666.78 million $5.10 39.49

Edwards Lifesciences Corporation has higher revenue and earnings than Illumina. Edwards Lifesciences Corporation is trading at a lower price-to-earnings ratio than Illumina, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Edwards Lifesciences Corporation and Illumina, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edwards Lifesciences Corporation 0 5 14 1 2.80
Illumina 2 8 9 0 2.37

Edwards Lifesciences Corporation currently has a consensus target price of $120.05, suggesting a potential upside of 8.51%. Illumina has a consensus target price of $179.15, suggesting a potential downside of 11.05%. Given Edwards Lifesciences Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Edwards Lifesciences Corporation is more favorable than Illumina.

Risk and Volatility

Edwards Lifesciences Corporation has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Illumina has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Edwards Lifesciences Corporation and Illumina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edwards Lifesciences Corporation 22.16% 27.17% 15.91%
Illumina 30.27% 19.69% 10.81%

Insider and Institutional Ownership

82.1% of Edwards Lifesciences Corporation shares are held by institutional investors. Comparatively, 93.3% of Illumina shares are held by institutional investors. 2.1% of Edwards Lifesciences Corporation shares are held by insiders. Comparatively, 1.6% of Illumina shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Edwards Lifesciences Corporation beats Illumina on 9 of the 15 factors compared between the two stocks.

Edwards Lifesciences Corporation Company Profile

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

Illumina Company Profile

Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.

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