Castle Biosciences, Inc. (CSTL) vs Veracyte, Inc. (VCYT)

Castle Biosciences, Inc. and Veracyte, Inc. are both Diagnostics & Research companies. Veracyte, Inc. is the larger, with a market value of $3.6B against $1.0B — 3.5× the size. Castle Biosciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 29.9×. Veracyte, Inc. grew revenue faster over the last twelve months: 17.3% against 3.18%. Veracyte, Inc. has the higher net margin (20.4% vs −5.43%) and the higher return on invested capital (7.32% vs −9.40%). Across the 18 metrics below, Veracyte, Inc. leads on 13 and Castle Biosciences, Inc. on 5.

Valuation

Metric CSTL VCYT Diagnostics & Research median
P/E n/m 29.94 35.56
P/S 2.72 6.14 4.37
P/B 2.07 2.48 3.06
Price to free cash flow n/m 20.78 35.76
EV/EBITDA n/m 23.93 24.35
EV/Sales 2.00 5.28 5.51
Earnings yield (2.07%) 3.34% (1.89%)
Free cash flow yield (0.05%) 4.81% (0.15%)

Profitability

Metric CSTL VCYT Diagnostics & Research median
Gross margin 77.26% 71.71% 50.89%
Operating margin (8.99%) 18.82% (8.57%)
Net margin (5.43%) 20.37% (6.37%)
Free cash flow margin (0.13%) 29.54% 0.00%
Return on equity (4.20%) 8.77% (2.92%)
Return on assets (3.51%) 8.09% (6.71%)
Return on invested capital (9.40%) 7.32% 0.00%

Growth

Metric CSTL VCYT Diagnostics & Research median
Revenue growth (TTM) 3.18% 17.28% 7.69%
EPS growth (last fiscal year) (233.87%) 164.52% 25.92%
Revenue growth, 5-year CAGR 40.60% 34.50% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CSTL VCYT Diagnostics & Research median
Debt to equity 0.02 0.00 0.11
Current ratio 6.04 9.16 2.02
Net debt to EBITDA 46.20 (5.44) 0.70

Dividend

Metric CSTL VCYT Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric CSTL VCYT Diagnostics & Research median
Market cap 1.03b 3.57b 2.16b

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