CareDx, Inc. (CDNA) vs GeneDx Holdings Corp. (WGS)

CareDx, Inc. and GeneDx Holdings Corp. are both Diagnostics & Research companies. CareDx, Inc. is the larger, with a market value of $3.5B against $2.1B — 1.7× the size. GeneDx Holdings Corp. 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 25.4%. CareDx, Inc. has the higher net margin (24.2% vs −23.4%) and the higher return on invested capital (130.1% vs −27.7%). Across the 18 metrics below, CareDx, Inc. leads on 13 and GeneDx Holdings Corp. on 5.

Valuation

Metric CDNA WGS Diagnostics & Research median
P/E 29.68 n/m 35.56
P/S 7.17 4.16 4.37
P/B 7.72 7.74 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 4.08 5.51
Earnings yield 3.37% (5.72%) (1.89%)
Free cash flow yield 2.53% (4.01%) (0.15%)

Profitability

Metric CDNA WGS Diagnostics & Research median
Gross margin 70.58% 69.37% 50.89%
Operating margin 23.61% (20.34%) (8.57%)
Net margin 24.23% (23.40%) (6.37%)
Free cash flow margin 18.49% (16.68%) 0.00%
Return on equity 29.49% (40.80%) (2.92%)
Return on assets 22.72% (22.50%) (6.71%)
Return on invested capital 130.06% (27.70%) 0.00%

Growth

Metric CDNA WGS Diagnostics & Research median
Revenue growth (TTM) 34.41% 25.42% 7.69%
EPS growth (last fiscal year) (143.01%) 62.37% 25.92%
Revenue growth, 5-year CAGR 14.59% 18.98% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA WGS Diagnostics & Research median
Debt to equity 0.00 0.40 0.11
Current ratio 4.58 3.30 2.02
Net debt to EBITDA 19.49 (10.13) 0.70

Dividend

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

Size

Metric CDNA WGS Diagnostics & Research median
Market cap 3.45b 2.09b 2.16b

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