CareDx, Inc. (CDNA) vs Castle Biosciences, Inc. (CSTL)

CareDx, Inc. and Castle Biosciences, Inc. are both Diagnostics & Research companies. CareDx, Inc. is the larger, with a market value of $3.5B against $1.0B — 3.3× the size. Castle Biosciences, Inc. has negative trailing earnings, so its P/E is not meaningful; CareDx, Inc. trades at 29.7×. CareDx, Inc. grew revenue faster over the last twelve months: 34.4% against 3.18%. CareDx, Inc. has the higher net margin (24.2% vs −5.43%) and the higher return on invested capital (130.1% vs −9.40%). Across the 18 metrics below, CareDx, Inc. leads on 12 and Castle Biosciences, Inc. on 6.

Valuation

Metric CDNA CSTL Diagnostics & Research median
P/E 29.68 n/m 35.56
P/S 7.17 2.72 4.37
P/B 7.72 2.07 3.06
Price to free cash flow 39.51 n/m 35.76
EV/EBITDA 22.40 n/m 24.35
EV/Sales 6.36 2.00 5.51
Earnings yield 3.37% (2.07%) (1.89%)
Free cash flow yield 2.53% (0.05%) (0.15%)

Profitability

Metric CDNA CSTL Diagnostics & Research median
Gross margin 70.58% 77.26% 50.89%
Operating margin 23.61% (8.99%) (8.57%)
Net margin 24.23% (5.43%) (6.37%)
Free cash flow margin 18.49% (0.13%) 0.00%
Return on equity 29.49% (4.20%) (2.92%)
Return on assets 22.72% (3.51%) (6.71%)
Return on invested capital 130.06% (9.40%) 0.00%

Growth

Metric CDNA CSTL Diagnostics & Research median
Revenue growth (TTM) 34.41% 3.18% 7.69%
EPS growth (last fiscal year) (143.01%) (233.87%) 25.92%
Revenue growth, 5-year CAGR 14.59% 40.60% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA CSTL Diagnostics & Research median
Debt to equity 0.00 0.02 0.11
Current ratio 4.58 6.04 2.02
Net debt to EBITDA 19.49 46.20 0.70

Dividend

Metric CDNA CSTL Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric CDNA CSTL Diagnostics & Research median
Market cap 3.45b 1.03b 2.16b

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