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 $3.2B against $2.5B — 1.3× the size. NeoGenomics, Inc. has negative trailing earnings, so its P/E is not meaningful; CareDx, Inc. trades at 29.6×. 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 29.62 n/m 33.95
P/S 7.15 3.27 4.87
P/B 7.70 3.19 3.12
Price to free cash flow 39.42 n/m 34.02
EV/EBITDA 22.60 n/m 25.20
EV/Sales 6.42 3.84 5.66
Earnings yield 3.38% (2.07%) (1.75%)
Free cash flow yield 2.54% (0.21%) (0.13%)

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%) —
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) 0.78

Dividend

Metric CDNA NEO Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric CDNA NEO Diagnostics & Research median
Market cap 3.18b 2.50b 2.56b

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