Freenome, Inc (FRNM) vs Veracyte, Inc. (VCYT)

Freenome, Inc and Veracyte, Inc. are both Diagnostics & Research companies. Veracyte, Inc. is the larger, with a market value of $1.9B against $1.1B — 1.7× the size. Freenome, Inc has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 15.2×. Veracyte, Inc. has the higher net margin (21.8% vs 0.00%) and the higher return on invested capital (4.33% vs 0.00%). Across the 11 metrics below, Veracyte, Inc. leads on 10 and Freenome, Inc on 1.

Valuation

Metric FRNM VCYT Diagnostics & Research median
P/E n/m 15.16 34.52
P/S n/m 3.34 4.24
P/B n/m 1.35 3.42
Price to free cash flow n/m 11.98 33.51
EV/EBITDA n/m 11.76 23.44
EV/Sales n/m 2.51 5.18
Earnings yield (2.98%) 6.59% (1.50%)
Free cash flow yield (3.55%) 8.34% 0.00%

Profitability

Metric FRNM VCYT Diagnostics & Research median
Gross margin — 71.98% 48.32%
Operating margin 0.00% 17.08% (5.68%)
Net margin 0.00% 21.80% (4.10%)
Free cash flow margin 0.00% 27.84% 0.00%
Return on equity 17.81% 9.43% 0.00%
Return on assets (0.86%) 8.63% (6.05%)
Return on invested capital 0.00% 4.33% 0.00%

Growth

Metric FRNM VCYT Diagnostics & Research median
Revenue growth (TTM) — 17.50% 8.99%
EPS growth (last fiscal year) (58.34%) 164.52% 20.36%
Revenue growth, 5-year CAGR — 34.50% 7.30%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric FRNM VCYT Diagnostics & Research median
Debt to equity 0.00 0.00 0.01
Current ratio 0.20 5.56 2.27
Net debt to EBITDA 0.29 (5.44) 0.68

Dividend

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

Size

Metric FRNM VCYT Diagnostics & Research median
Market cap 1.12b 1.93b 2.22b

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