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 $4.0B against $1.9B — 2.1× the size. GeneDx Holdings Corp. 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 25.4%. CareDx, Inc. has the higher net margin (25.9% vs −23.4%) and the higher return on invested capital (33.6% vs −27.7%). Across the 18 metrics below, CareDx, Inc. leads on 11 and GeneDx Holdings Corp. on 7.

Valuation

Metric CDNA WGS Diagnostics & Research median
P/E 30.91 n/m 34.52
P/S 8.06 4.24 4.24
P/B 8.58 7.89 3.42
Price to free cash flow 68.93 n/m 33.51
EV/EBITDA 26.62 n/m 23.44
EV/Sales 7.57 4.16 5.18
Earnings yield 3.24% (5.61%) (1.50%)
Free cash flow yield 1.45% (3.93%) 0.00%

Profitability

Metric CDNA WGS Diagnostics & Research median
Gross margin 70.97% 69.37% 48.32%
Operating margin 23.42% (20.34%) (5.68%)
Net margin 25.86% (23.40%) (4.10%)
Free cash flow margin 12.01% (16.68%) 0.00%
Return on equity 33.04% (40.80%) 0.00%
Return on assets 23.96% (22.50%) (6.05%)
Return on invested capital 33.56% (27.70%) 0.00%

Growth

Metric CDNA WGS Diagnostics & Research median
Revenue growth (TTM) 38.94% 25.42% 8.99%
EPS growth (last fiscal year) (143.01%) 62.37% 20.36%
Revenue growth, 5-year CAGR 14.59% 18.98% 7.30%
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 0.01
Current ratio 2.31 3.30 2.27
Net debt to EBITDA 19.49 (10.13) 0.68

Dividend

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

Size

Metric CDNA WGS Diagnostics & Research median
Market cap 4.01b 1.92b 2.22b

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