Guardant Health, Inc. (GH) vs ICON PLC (ICLR)

Guardant Health, Inc. and ICON PLC are both Diagnostics & Research companies. Guardant Health, Inc. is the larger, with a market value of $20.6B against $15.1B — 1.4× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; ICON PLC trades at 34.9×. Guardant Health, Inc. grew revenue faster over the last twelve months: 41.7% against 1.82%. ICON PLC has the higher net margin (5.45% vs −37.9%) and the higher return on invested capital (3.84% vs −25.7%). Across the 18 metrics below, Guardant Health, Inc. leads on 9 and ICON PLC on 9.

Valuation

Metric GH ICLR Diagnostics & Research median
P/E n/m 34.94 35.23
P/S 15.82 1.91 4.08
P/B n/m 1.72 3.45
Price to free cash flow n/m 18.34 33.72
EV/EBITDA n/m 18.05 25.01
EV/Sales 16.17 2.38 5.20
Earnings yield (2.45%) 2.86% (1.47%)
Free cash flow yield (1.24%) 5.45% 0.00%

Profitability

Metric GH ICLR Diagnostics & Research median
Gross margin 65.19% 23.43% 48.32%
Operating margin (39.41%) 8.72% (5.68%)
Net margin (37.93%) 5.45% (4.10%)
Free cash flow margin (18.15%) 10.41% 0.00%
Return on equity 153.90% 4.86% 0.00%
Return on assets (30.68%) 2.74% (6.05%)
Return on invested capital (25.68%) 3.84% 0.00%

Growth

Metric GH ICLR Diagnostics & Research median
Revenue growth (TTM) 41.69% 1.82% 9.15%
EPS growth (last fiscal year) 6.74% (67.42%) 20.36%
Revenue growth, 5-year CAGR 27.92% 24.15% 7.30%
Net income growth, 5-year CAGR 0.00% (7.15%) 0.00%

Health

Metric GH ICLR Diagnostics & Research median
Debt to equity (5.45) 0.37 0.04
Current ratio 3.60 1.32 2.27
Net debt to EBITDA (0.75) 3.34 0.68

Dividend

Metric GH ICLR Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric GH ICLR Diagnostics & Research median
Market cap 20.59b 15.11b 1.93b

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