ILMN (Illumina Inc) vs S&P 500 Comparison

ILMN

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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ILMN

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

ILMN

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

ILMN

0KHE

TMO

DHR

207940

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Illumina Inc
Glance View

Economic Moat

None

Market Cap

13.6B USD

Industry

Life Sciences Tools & Services

In the world of genomics, Illumina Inc. stands as a pioneer, reshaping the landscape of genetic sequencing with a precision that borders on artistry. This San Diego-based company, founded in 1998, has become an industry cornerstone by unlocking the potential of the human genome through its advanced sequencing technologies. Illumina's success is anchored in its innovative creation of next-generation sequencing platforms, which enable researchers to analyze DNA at a scale and speed previously thought impossible. By providing the tools that sequence, analyze, and interpret vast amounts of genetic data, Illumina plays a crucial role in driving discoveries in personalized medicine, agriculture, and countless other fields. At the heart of Illumina's business model lies its suite of sequencing instruments and consumables, which form the backbone of its revenue generation. Their sequencing machines, ranging from behemoth instruments capable of cracking the human genome to compact devices used for focused applications, operate much like a razor-and-blade model. Once customers invest in Illumina's platforms, they continue to purchase consumable products, including reagents and advanced software, crucial for each sequencing run. This model not only fosters continuous engagement with their user base but also sustains a steady revenue stream. By expanding its reach into genomic-based clinical applications, Illumina has also started tapping into diagnostic markets, promising to transform the future of healthcare while ensuring sustained growth for the company.

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ILMN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ILMN

vs

S&P 500

Stocks Performance
ILMN vs S&P 500

Performance Gap
ILMN vs S&P 500

Performance By Year
ILMN vs S&P 500

Competitors Performance
Illumina Inc vs Peers

Illumina Inc
Glance View

Company

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US	P	PerkinElmer Inc LSE:0KHE	Select
US		Thermo Fisher Scientific Inc NYSE:TMO	Select
US		Danaher Corp NYSE:DHR	Select
KR		Samsung Biologics Co Ltd KRX:207940	Select
CH		Lonza Group AG SIX:LONN	Select
US		Agilent Technologies Inc NYSE:A	Select
US		IQVIA Holdings Inc NYSE:IQV	Select
CN		WuXi AppTec Co Ltd SSE:603259	Select
US		Mettler-Toledo International Inc NYSE:MTD	Select
US		Waters Corp NYSE:WAT	Select

	Johnson & Johnson NYSE:JNJ	162.89 USD -0.06%
	Berkshire Hathaway Inc NYSE:BRK.A	791 639.01 USD 0.22%
	Bank of America Corp NYSE:BAC	42.52 USD 0.73%
	Mastercard Inc NYSE:MA	537.48 USD 0.26%
	UnitedHealth Group Inc NYSE:UNH	513.6 USD 2.07%
	Exxon Mobil Corp NYSE:XOM	115.64 USD 0.2%

ILMN vs S&P 500

Stocks Performance ILMN vs S&P 500

Performance Gap ILMN vs S&P 500

Performance By Year ILMN vs S&P 500

Competitors Performance Illumina Inc vs Peers

Illumina Inc Glance View

Company

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Tools

Stocks

ILMN

vs

S&P 500

Stocks Performance
ILMN vs S&P 500

Performance Gap
ILMN vs S&P 500

Performance By Year
ILMN vs S&P 500

Competitors Performance
Illumina Inc vs Peers

Illumina Inc
Glance View