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 34.5×. 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 34.48 34.52
P/S 16.20 1.88 4.24
P/B n/m 1.70 3.42
Price to free cash flow n/m 18.10 33.51
EV/EBITDA n/m 17.86 23.44
EV/Sales 16.55 2.35 5.18
Earnings yield (2.39%) 2.90% (1.50%)
Free cash flow yield (1.21%) 5.53% 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% 8.99%
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 0.01
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 — — 0.67%
Payout ratio — — 0.20

Size

Metric GH ICLR Diagnostics & Research median
Market cap 20.59b 15.11b 2.22b

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