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 $1.9B against $1.0B — 1.9× the size. Castle Biosciences, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 15.2×. Veracyte, Inc. grew revenue faster over the last twelve months: 17.5% against 9.78%. Veracyte, Inc. has the higher net margin (21.8% vs −6.10%) and the higher return on invested capital (4.33% vs −3.63%). Across the 19 metrics below, Veracyte, Inc. leads on 15 and Castle Biosciences, Inc. on 4.

Valuation

Metric CSTL VCYT Diagnostics & Research median
P/E n/m 15.16 34.52
P/S 2.77 3.34 4.24
P/B 2.19 1.35 3.42
Price to free cash flow 262.33 11.98 33.51
EV/EBITDA n/m 11.76 23.44
EV/Sales 2.10 2.51 5.18
Earnings yield (2.25%) 6.59% (1.50%)
Free cash flow yield 0.38% 8.34% 0.00%

Profitability

Metric CSTL VCYT Diagnostics & Research median
Gross margin 77.07% 71.98% 48.32%
Operating margin (7.43%) 17.08% (5.68%)
Net margin (6.10%) 21.80% (4.10%)
Free cash flow margin 1.06% 27.84% 0.00%
Return on equity (4.87%) 9.43% 0.00%
Return on assets (4.03%) 8.63% (6.05%)
Return on invested capital (3.63%) 4.33% 0.00%

Growth

Metric CSTL VCYT Diagnostics & Research median
Revenue growth (TTM) 9.78% 17.50% 8.99%
EPS growth (last fiscal year) (233.87%) 164.52% 20.36%
Revenue growth, 5-year CAGR 40.60% 34.50% 7.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CSTL VCYT Diagnostics & Research median
Debt to equity 0.01 0.00 0.01
Current ratio 5.28 5.56 2.27
Net debt to EBITDA 46.20 (5.44) 0.68

Dividend

Metric CSTL VCYT Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric CSTL VCYT Diagnostics & Research median
Market cap 1.04b 1.93b 2.22b

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