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 $4.0B against $2.1B — 1.9× the size. NeoGenomics, 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 11.1%. CareDx, Inc. has the higher net margin (25.9% vs −4.10%) and the higher return on invested capital (33.6% vs −2.97%). Across the 19 metrics below, CareDx, Inc. leads on 13 and NeoGenomics, Inc. on 6.

Valuation

Metric CDNA NEO Diagnostics & Research median
P/E 30.91 n/m 34.52
P/S 8.06 2.70 4.24
P/B 8.58 2.66 3.42
Price to free cash flow 68.93 n/m 33.51
EV/EBITDA 26.62 146.75 23.44
EV/Sales 7.57 3.26 5.18
Earnings yield 3.24% (1.50%) (1.50%)
Free cash flow yield 1.45% (1.25%) 0.00%

Profitability

Metric CDNA NEO Diagnostics & Research median
Gross margin 70.97% 44.77% 48.32%
Operating margin 23.42% (6.27%) (5.68%)
Net margin 25.86% (4.10%) (4.10%)
Free cash flow margin 12.01% (3.37%) 0.00%
Return on equity 33.04% (3.94%) 0.00%
Return on assets 23.96% (2.35%) (6.05%)
Return on invested capital 33.56% (2.97%) 0.00%

Growth

Metric CDNA NEO Diagnostics & Research median
Revenue growth (TTM) 38.94% 11.08% 8.99%
EPS growth (last fiscal year) (143.01%) (35.48%) 20.36%
Revenue growth, 5-year CAGR 14.59% 10.35% 7.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA NEO Diagnostics & Research median
Debt to equity 0.00 0.47 0.01
Current ratio 2.31 3.53 2.27
Net debt to EBITDA 19.49 (3.96) 0.68

Dividend

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

Size

Metric CDNA NEO Diagnostics & Research median
Market cap 4.01b 2.13b 2.22b

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