Guardant Health, Inc. (GH) vs Labcorp Holdings Inc. (LH)

Guardant Health, Inc. and Labcorp Holdings Inc. are both Diagnostics & Research companies. Guardant Health, Inc. and Labcorp Holdings Inc. are of similar size ($23.9B and $21.9B). Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Labcorp Holdings Inc. trades at 25.4×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 6.41%. Labcorp Holdings Inc. has the higher net margin (6.99% vs −38.3%) and the higher return on invested capital (6.50% vs −129.7%). Across the 18 metrics below, Labcorp Holdings Inc. leads on 10 and Guardant Health, Inc. on 8.

Valuation

Metric GH LH Diagnostics & Research median
P/E n/m 25.44 33.95
P/S 19.91 1.76 4.87
P/B n/m 2.94 3.12
Price to free cash flow n/m 24.51 34.02
EV/EBITDA n/m 14.70 25.20
EV/Sales 20.29 2.25 5.66
Earnings yield (1.97%) 3.93% (1.75%)
Free cash flow yield (1.10%) 4.08% (0.13%)

Profitability

Metric GH LH Diagnostics & Research median
Gross margin 65.01% 28.88% 50.89%
Operating margin (39.75%) 10.43% (8.57%)
Net margin (38.33%) 6.99% (6.37%)
Free cash flow margin (20.35%) 8.16% 0.00%
Return on equity 171.64% 11.74% (2.92%)
Return on assets (27.95%) 5.48% (6.71%)
Return on invested capital (129.70%) 6.50% 0.00%

Growth

Metric GH LH Diagnostics & Research median
Revenue growth (TTM) 42.74% 6.41% 7.69%
EPS growth (last fiscal year) 6.74% 18.33% —
Revenue growth, 5-year CAGR 27.92% (0.04%) 7.40%
Net income growth, 5-year CAGR 0.00% (10.85%) 0.00%

Health

Metric GH LH Diagnostics & Research median
Debt to equity (6.74) 0.69 0.11
Current ratio 4.03 1.80 2.02
Net debt to EBITDA (0.75) 2.23 0.78

Dividend

Metric GH LH Diagnostics & Research median
Dividend yield — 0.98% 0.70%
Payout ratio 0.00 0.27 0.00

Size

Metric GH LH Diagnostics & Research median
Market cap 23.94b 21.86b 2.56b

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