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

Guardant Health, Inc. and Labcorp Holdings Inc. are both Diagnostics & Research companies. Labcorp Holdings Inc. is the larger, with a market value of $29.5B against $20.6B — 1.4× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Labcorp Holdings Inc. trades at 29.5×. Guardant Health, Inc. grew revenue faster over the last twelve months: 41.7% against 6.02%. Labcorp Holdings Inc. has the higher net margin (6.88% vs −37.9%) and the higher return on invested capital (6.76% vs −25.7%). 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 29.53 34.52
P/S 16.20 2.01 4.24
P/B n/m 3.32 3.42
Price to free cash flow n/m 25.40 33.51
EV/EBITDA n/m 15.61 23.44
EV/Sales 16.55 2.36 5.18
Earnings yield (2.39%) 3.39% (1.50%)
Free cash flow yield (1.21%) 3.94% 0.00%

Profitability

Metric GH LH Diagnostics & Research median
Gross margin 65.19% 28.96% 48.32%
Operating margin (39.41%) 10.29% (5.68%)
Net margin (37.93%) 6.88% (4.10%)
Free cash flow margin (18.15%) 8.87% 0.00%
Return on equity 153.90% 11.45% 0.00%
Return on assets (30.68%) 5.40% (6.05%)
Return on invested capital (25.68%) 6.76% 0.00%

Growth

Metric GH LH Diagnostics & Research median
Revenue growth (TTM) 41.69% 6.02% 8.99%
EPS growth (last fiscal year) 6.74% 18.33% 20.36%
Revenue growth, 5-year CAGR 27.92% (0.04%) 7.30%
Net income growth, 5-year CAGR 0.00% (10.85%) 0.00%

Health

Metric GH LH Diagnostics & Research median
Debt to equity (5.45) 0.60 0.01
Current ratio 3.60 1.41 2.27
Net debt to EBITDA (0.75) 2.23 0.68

Dividend

Metric GH LH Diagnostics & Research median
Dividend yield — 0.79% 0.67%
Payout ratio — 0.24 0.20

Size

Metric GH LH Diagnostics & Research median
Market cap 20.59b 29.50b 2.22b

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