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 $6.1B against $3.5B — 1.8× the size. GRAIL, 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 23.1%. CareDx, Inc. has the higher net margin (24.2% vs −237.0%) and the higher return on invested capital (130.1% vs −20.8%). Across the 16 metrics below, CareDx, Inc. leads on 12 and GRAIL, Inc. on 4.

Valuation

Metric CDNA GRAL Diagnostics & Research median
P/E 29.68 n/m 35.56
P/S 7.17 30.73 4.37
P/B 7.72 2.00 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 25.52 5.51
Earnings yield 3.37% (8.28%) (1.89%)
Free cash flow yield 2.53% (5.83%) (0.15%)

Profitability

Metric CDNA GRAL Diagnostics & Research median
Gross margin 70.58% (31.31%) 50.89%
Operating margin 23.61% (338.40%) (8.57%)
Net margin 24.23% (236.95%) (6.37%)
Free cash flow margin 18.49% (179.21%) 0.00%
Return on equity 29.49% (16.12%) (2.92%)
Return on assets 22.72% (14.12%) (6.71%)
Return on invested capital 130.06% (20.79%) 0.00%

Growth

Metric CDNA GRAL Diagnostics & Research median
Revenue growth (TTM) 34.41% 23.07% 7.69%
EPS growth (last fiscal year) (143.01%) 82.51% 25.92%
Revenue growth, 5-year CAGR 14.59% — 7.40%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CDNA GRAL Diagnostics & Research median
Debt to equity 0.00 0.00 0.11
Current ratio 4.58 10.95 2.02
Net debt to EBITDA 19.49 2.27 0.70

Dividend

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

Size

Metric CDNA GRAL Diagnostics & Research median
Market cap 3.45b 6.05b 2.16b

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