Fortrea Holdings Inc. (FTRE) vs Vericel Corporation (VCEL)

Fortrea Holdings Inc. and Vericel Corporation are both Biotechnology companies. Fortrea Holdings Inc. and Vericel Corporation are of similar size ($2.2B and $2.1B). Fortrea Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Vericel Corporation trades at 83.6×. Vericel Corporation grew revenue faster over the last twelve months: 23.0% against −2.09%. Vericel Corporation has the higher net margin (7.91% vs −3.18%) and the higher return on invested capital (5.49% vs −0.48%). Across the 21 metrics below, Vericel Corporation leads on 15 and Fortrea Holdings Inc. on 6.

Valuation

Metric FTRE VCEL Biotechnology median
P/E n/m 83.60 8.50
P/S 0.80 6.69 9.71
P/B 4.07 5.54 2.13
Price to free cash flow 10.77 33.24 20.82
EV/EBITDA 44.71 60.89 0.64
EV/Sales 1.13 6.22 9.21
Earnings yield (4.05%) 1.20% (33.15%)
Free cash flow yield 9.29% 3.01% (25.50%)

Profitability

Metric FTRE VCEL Biotechnology median
Gross margin 19.30% 74.56% 65.16%
Operating margin (0.40%) 5.95% 0.00%
Net margin (3.18%) 7.91% 0.00%
Free cash flow margin 7.40% 20.13% 0.00%
Return on equity (15.30%) 7.16% (56.36%)
Return on assets (3.07%) 5.16% (48.04%)
Return on invested capital (0.48%) 5.49% 0.00%

Growth

Metric FTRE VCEL Biotechnology median
Revenue growth (TTM) (2.09%) 22.95% 6.02%
EPS growth (last fiscal year) (194.55%) 60.00% 30.26%
Revenue growth, 5-year CAGR 1.09% 17.34% 9.41%
Net income growth, 5-year CAGR 0.00% 41.97% 0.00%

Health

Metric FTRE VCEL Biotechnology median
Debt to equity 2.01 0.00 0.00
Current ratio 0.96 5.04 4.72
Net debt to EBITDA 266.13 (6.08) 0.96

Dividend

Metric FTRE VCEL Biotechnology median
Dividend yield — — 0.09%
Payout ratio — — —

Size

Metric FTRE VCEL Biotechnology median
Market cap 2.16b 2.10b 135.18m

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