Illumina (NASDAQ: ILMN) is one of 82 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its peers? We will compare Illumina to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.

Profitability

This table compares Illumina and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Illumina 30.27% 19.69% 10.81%
Illumina Competitors -327.91% -35.29% -12.43%

Volatility & Risk

Illumina has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Illumina’s peers have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Illumina and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Illumina 2 9 9 0 2.35
Illumina Competitors 250 1807 3238 105 2.59

Illumina presently has a consensus target price of $180.31, suggesting a potential downside of 11.69%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 6.86%. Given Illumina’s peers stronger consensus rating and higher probable upside, analysts clearly believe Illumina has less favorable growth aspects than its peers.

Institutional & Insider Ownership

93.3% of Illumina shares are owned by institutional investors. Comparatively, 53.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 1.6% of Illumina shares are owned by insiders. Comparatively, 17.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Illumina and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Illumina $2.49 billion $666.78 million 40.04
Illumina Competitors $2.02 billion $430.74 million -69.19

Illumina has higher revenue and earnings than its peers. Illumina is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Illumina beats its peers on 7 of the 13 factors compared.

About Illumina

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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