Castle Biosciences, Inc. (CSTL) vs NeoGenomics, Inc. (NEO)

Castle Biosciences, Inc. and NeoGenomics, Inc. are both Diagnostics & Research companies. NeoGenomics, Inc. is the larger, with a market value of $2.5B against $1.1B — 2.3× the size. NeoGenomics, Inc. grew revenue faster over the last twelve months: 11.2% against 3.18%. Castle Biosciences, Inc. has the higher net margin (−5.43% vs −6.77%) and the lower return on invested capital (−9.40% vs −4.20%). Across the 18 metrics below, Castle Biosciences, Inc. leads on 13 and NeoGenomics, Inc. on 5.

Valuation

Metric CSTL NEO Diagnostics & Research median
P/E n/m n/m 33.95
P/S 3.03 3.27 4.87
P/B 2.30 3.19 3.12
Price to free cash flow n/m n/m 34.02
EV/EBITDA n/m n/m 25.20
EV/Sales 2.31 3.84 5.66
Earnings yield (1.85%) (2.07%) (1.75%)
Free cash flow yield (0.04%) (0.21%) (0.13%)

Profitability

Metric CSTL NEO Diagnostics & Research median
Gross margin 77.26% 43.92% 50.89%
Operating margin (8.99%) (8.93%) (8.57%)
Net margin (5.43%) (6.77%) (6.37%)
Free cash flow margin (0.13%) (0.69%) 0.00%
Return on equity (4.20%) (6.33%) (2.92%)
Return on assets (3.51%) (3.78%) (6.71%)
Return on invested capital (9.40%) (4.20%) 0.00%

Growth

Metric CSTL NEO Diagnostics & Research median
Revenue growth (TTM) 3.18% 11.19% 7.69%
EPS growth (last fiscal year) (233.87%) (35.48%) —
Revenue growth, 5-year CAGR 40.60% 10.35% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CSTL NEO Diagnostics & Research median
Debt to equity 0.02 0.48 0.11
Current ratio 6.04 3.60 2.02
Net debt to EBITDA 46.20 (3.96) 0.78

Dividend

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

Size

Metric CSTL NEO Diagnostics & Research median
Market cap 1.08b 2.50b 2.56b

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