Industry Comparison: Evaluating Agilent Technologies Against Competitors In Life Sciences Tools & Services Industry

In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. In this article, we will conduct a comprehensive industry comparison, evaluating Agilent Technologies A against its key competitors in the Life Sciences Tools & Services industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Agilent Technologies Background

Originally spun out of Hewlett-Packard in 1999, Agilent has evolved into a leading life sciences and diagnostics firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab (consisting of consumables and services related to life science and applied tools), and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, but it also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. The company is geographically diverse, with operations in the U.S. and China representing the largest country concentrations.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Agilent Technologies Inc 31.52 6.25 5.94 4.97% $0.46 $0.86 -8.39%
Thermo Fisher Scientific Inc 37.30 4.88 5.30 2.88% $2.79 $4.21 -3.41%
Danaher Corp 48.56 3.67 8.32 2.04% $1.92 $3.49 -2.57%
IQVIA Holdings Inc 29.48 6.20 2.65 4.62% $0.77 $1.29 2.33%
West Pharmaceutical Services Inc 42.20 8.69 8.19 4.15% $0.16 $0.23 -2.96%
Waters Corp 29.61 14.23 6.15 8.49% $0.18 $0.38 -22.29%
Avantor Inc 61.76 2.99 2.32 1.14% $0.24 $0.57 -5.65%
Revvity Inc 74.35 1.72 4.98 0.33% $0.17 $0.36 -3.7%
Medpace Holdings Inc 41.35 18.71 6.57 16.67% $0.11 $0.16 17.73%
Bio-Techne Corp 61.66 6.03 10.76 2.47% $0.09 $0.2 3.16%
Charles River Laboratories International Inc 25.21 3.04 2.69 1.86% $0.22 $0.34 -1.73%
Bruker Corp 23.80 6.95 3.18 3.65% $0.11 $0.35 5.31%
Repligen Corp 522.52 4 13.06 0.11% $0.02 $0.07 -17.14%
Stevanato Group SPA 33.57 3.51 4.19 1.53% $0.05 $0.06 -0.84%
Sotera Health Co 62.89 7.88 3.15 1.44% $0.09 $0.13 12.51%
Average 78.16 6.61 5.82 3.67% $0.49 $0.85 -1.38%

By thoroughly analyzing Agilent Technologies, we can discern the following trends:

  • The stock's Price to Earnings ratio of 31.52 is lower than the industry average by 0.4x, suggesting potential value in the eyes of market participants.

  • Considering a Price to Book ratio of 6.25, which is well below the industry average by 0.95x, the stock may be undervalued based on its book value compared to its peers.

  • The stock's relatively high Price to Sales ratio of 5.94, surpassing the industry average by 1.02x, may indicate an aspect of overvaluation in terms of sales performance.

  • The Return on Equity (ROE) of 4.97% is 1.3% above the industry average, highlighting efficient use of equity to generate profits.

  • With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $460 Million, which is 0.94x below the industry average, the company may face lower profitability or financial challenges.

  • With higher gross profit of $860 Million, which indicates 1.01x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of -8.39% compared to the industry average of -1.38%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By analyzing Agilent Technologies in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

  • Compared to its top 4 peers, Agilent Technologies has a stronger financial position indicated by its lower debt-to-equity ratio of 0.41.

  • This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.

Key Takeaways

For Agilent Technologies, the PE and PB ratios suggest the stock is undervalued compared to peers, indicating potential for growth. However, the high PS ratio may indicate overvaluation based on revenue. In terms of ROE and gross profit, Agilent Technologies outperforms peers, reflecting strong profitability. The low EBITDA and revenue growth rates may indicate challenges in generating consistent earnings and expanding market share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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