CareDx, Inc. (CDNA) vs Sotera Health Company (SHC)

CareDx, Inc. and Sotera Health Company are both Diagnostics & Research companies. Sotera Health Company is the larger, with a market value of $5.3B against $3.2B — 1.7× the size. CareDx, Inc. trades at the lower P/E: 29.6× against 32.1×. CareDx, Inc. grew revenue faster over the last twelve months: 34.4% against 8.15%. CareDx, Inc. has the higher net margin (24.2% vs 13.4%) and the higher return on invested capital (130.1% vs 9.82%). Across the 21 metrics below, CareDx, Inc. leads on 15 and Sotera Health Company on 6.

Valuation

Metric CDNA SHC Diagnostics & Research median
P/E 29.62 32.14 33.95
P/S 7.15 4.30 4.87
P/B 7.70 7.87 3.12
Price to free cash flow 39.42 46.45 34.02
EV/EBITDA 22.60 13.41 25.20
EV/Sales 6.42 5.85 5.66
Earnings yield 3.38% 3.11% (1.75%)
Free cash flow yield 2.54% 2.15% (0.13%)

Profitability

Metric CDNA SHC Diagnostics & Research median
Gross margin 70.58% 54.97% 50.89%
Operating margin 23.61% 32.82% (8.57%)
Net margin 24.23% 13.44% (6.37%)
Free cash flow margin 18.49% 9.27% 0.00%
Return on equity 29.49% 27.78% (2.92%)
Return on assets 22.72% 5.01% (6.71%)
Return on invested capital 130.06% 9.82% 0.00%

Growth

Metric CDNA SHC Diagnostics & Research median
Revenue growth (TTM) 34.41% 8.15% 7.69%
EPS growth (last fiscal year) (143.01%) 68.75% —
Revenue growth, 5-year CAGR 14.59% 7.30% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA SHC Diagnostics & Research median
Debt to equity 0.00 3.35 0.11
Current ratio 4.58 2.80 2.02
Net debt to EBITDA 19.49 3.74 0.78

Dividend

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

Size

Metric CDNA SHC Diagnostics & Research median
Market cap 3.18b 5.27b 2.56b

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