Guardant Health, Inc. (GH) vs IQVIA Holdings Inc. (IQV)

Guardant Health, Inc. and IQVIA Holdings Inc. are both Diagnostics & Research companies. IQVIA Holdings Inc. is the larger, with a market value of $45.3B against $23.9B — 1.9× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; IQVIA Holdings Inc. trades at 33.3×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 8.17%. IQVIA Holdings Inc. has the higher net margin (8.10% vs −38.3%) and the higher return on invested capital (6.80% vs −129.7%). Across the 18 metrics below, IQVIA Holdings Inc. leads on 10 and Guardant Health, Inc. on 8.

Valuation

Metric GH IQV Diagnostics & Research median
P/E n/m 33.26 33.95
P/S 19.91 2.64 4.87
P/B n/m 7.13 3.12
Price to free cash flow n/m 19.88 34.02
EV/EBITDA n/m 17.27 25.20
EV/Sales 20.29 3.46 5.66
Earnings yield (1.97%) 3.01% (1.75%)
Free cash flow yield (1.10%) 5.03% (0.13%)

Profitability

Metric GH IQV Diagnostics & Research median
Gross margin 65.01% 32.97% 50.89%
Operating margin (39.75%) 12.95% (8.57%)
Net margin (38.33%) 8.10% (6.37%)
Free cash flow margin (20.35%) 13.30% 0.00%
Return on equity 171.64% 22.75% (2.92%)
Return on assets (27.95%) 4.70% (6.71%)
Return on invested capital (129.70%) 6.80% 0.00%

Growth

Metric GH IQV Diagnostics & Research median
Revenue growth (TTM) 42.74% 8.17% 7.69%
EPS growth (last fiscal year) 6.74% 4.67% —
Revenue growth, 5-year CAGR 27.92% 7.50% 7.40%
Net income growth, 5-year CAGR 0.00% 37.27% 0.00%

Health

Metric GH IQV Diagnostics & Research median
Debt to equity (6.74) 2.54 0.11
Current ratio 4.03 0.71 2.02
Net debt to EBITDA (0.75) 4.06 0.78

Dividend

Metric GH IQV Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric GH IQV Diagnostics & Research median
Market cap 23.94b 45.27b 2.56b

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