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 $3.2B against $2.6B — 1.2× the size. GeneDx Holdings Corp. 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 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 29.62 n/m 33.95
P/S 7.15 5.78 4.87
P/B 7.70 10.75 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 5.70 5.66
Earnings yield 3.38% (4.12%) (1.75%)
Free cash flow yield 2.54% (2.89%) (0.13%)

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% —
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) 0.78

Dividend

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

Size

Metric CDNA WGS Diagnostics & Research median
Market cap 3.18b 2.61b 2.56b

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