CareDx, Inc. (CDNA) vs NeoGenomics, Inc. (NEO)

CareDx, Inc. and NeoGenomics, Inc. are both Diagnostics & Research companies. CareDx, Inc. is the larger, with a market value of $3.5B against $2.2B — 1.6× the size. NeoGenomics, 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 11.2%. CareDx, Inc. has the higher net margin (24.2% vs −6.77%) and the higher return on invested capital (130.1% vs −4.20%). Across the 18 metrics below, CareDx, Inc. leads on 13 and NeoGenomics, Inc. on 5.

Valuation

Metric CDNA NEO Diagnostics & Research median
P/E 29.68 n/m 35.56
P/S 7.17 2.82 4.37
P/B 7.72 2.75 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 3.38 5.51
Earnings yield 3.37% (2.40%) (1.89%)
Free cash flow yield 2.53% (0.25%) (0.15%)

Profitability

Metric CDNA NEO Diagnostics & Research median
Gross margin 70.58% 43.92% 50.89%
Operating margin 23.61% (8.93%) (8.57%)
Net margin 24.23% (6.77%) (6.37%)
Free cash flow margin 18.49% (0.69%) 0.00%
Return on equity 29.49% (6.33%) (2.92%)
Return on assets 22.72% (3.78%) (6.71%)
Return on invested capital 130.06% (4.20%) 0.00%

Growth

Metric CDNA NEO Diagnostics & Research median
Revenue growth (TTM) 34.41% 11.19% 7.69%
EPS growth (last fiscal year) (143.01%) (35.48%) 25.92%
Revenue growth, 5-year CAGR 14.59% 10.35% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA NEO Diagnostics & Research median
Debt to equity 0.00 0.48 0.11
Current ratio 4.58 3.60 2.02
Net debt to EBITDA 19.49 (3.96) 0.70

Dividend

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

Size

Metric CDNA NEO Diagnostics & Research median
Market cap 3.45b 2.22b 2.16b

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