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 $22.3B against $13.5B — 1.6× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; ICON PLC trades at 254×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 3.26%. ICON PLC has the higher net margin (0.51% vs −38.3%) and the higher return on invested capital (1.57% vs −129.7%). 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 254.23 35.56
P/S 17.78 1.58 4.37
P/B n/m 1.39 3.06
Price to free cash flow n/m 14.80 35.76
EV/EBITDA n/m 23.30 24.35
EV/Sales 18.16 1.87 5.51
Earnings yield (2.20%) 0.39% (1.89%)
Free cash flow yield (1.23%) 6.76% (0.15%)

Profitability

Metric GH ICLR Diagnostics & Research median
Gross margin 65.01% 23.91% 50.89%
Operating margin (39.75%) 3.57% (8.57%)
Net margin (38.33%) 0.51% (6.37%)
Free cash flow margin (20.35%) 10.66% 0.00%
Return on equity 171.64% 0.45% (2.92%)
Return on assets (27.95%) 0.26% (6.71%)
Return on invested capital (129.70%) 1.57% 0.00%

Growth

Metric GH ICLR Diagnostics & Research median
Revenue growth (TTM) 42.74% 3.26% 7.69%
EPS growth (last fiscal year) 6.74% (69.57%) 25.92%
Revenue growth, 5-year CAGR 27.92% 24.15% 7.40%
Net income growth, 5-year CAGR 0.00% (7.15%) 0.00%

Health

Metric GH ICLR Diagnostics & Research median
Debt to equity (6.74) 0.36 0.11
Current ratio 4.03 0.95 2.02
Net debt to EBITDA (0.75) 3.34 0.70

Dividend

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

Size

Metric GH ICLR Diagnostics & Research median
Market cap 22.26b 13.51b 2.16b

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