CareDx, Inc. (CDNA) vs GRAIL, Inc. (GRAL)

CareDx, Inc. and GRAIL, Inc. are both Diagnostics & Research companies. GRAIL, Inc. is the larger, with a market value of $5.3B against $4.0B — 1.3× the size. GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; CareDx, Inc. trades at 30.9×. CareDx, Inc. grew revenue faster over the last twelve months: 38.9% against 17.5%. CareDx, Inc. has the higher net margin (25.9% vs −243.8%) and the higher return on invested capital (33.6% vs −14.7%). Across the 16 metrics below, CareDx, Inc. leads on 12 and GRAIL, Inc. on 4.

Valuation

Metric CDNA GRAL Diagnostics & Research median
P/E 30.91 n/m 34.52
P/S 8.06 34.93 4.24
P/B 8.58 2.37 3.42
Price to free cash flow 68.93 n/m 33.51
EV/EBITDA 26.62 n/m 23.44
EV/Sales 7.57 29.76 5.18
Earnings yield 3.24% (7.64%) (1.50%)
Free cash flow yield 1.45% (5.36%) 0.00%

Profitability

Metric CDNA GRAL Diagnostics & Research median
Gross margin 70.97% 0.00% 48.32%
Operating margin 23.42% (347.28%) (5.68%)
Net margin 25.86% (243.80%) (4.10%)
Free cash flow margin 12.01% (187.27%) 0.00%
Return on equity 33.04% (17.31%) 0.00%
Return on assets 23.96% (15.24%) (6.05%)
Return on invested capital 33.56% (14.74%) 0.00%

Growth

Metric CDNA GRAL Diagnostics & Research median
Revenue growth (TTM) 38.94% 17.47% 8.99%
EPS growth (last fiscal year) (143.01%) 82.51% 20.36%
Revenue growth, 5-year CAGR 14.59% — 7.30%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CDNA GRAL Diagnostics & Research median
Debt to equity 0.00 0.00 0.01
Current ratio 2.31 8.93 2.27
Net debt to EBITDA 19.49 2.27 0.68

Dividend

Metric CDNA GRAL Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric CDNA GRAL Diagnostics & Research median
Market cap 4.01b 5.32b 2.22b

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