Guardant Health, Inc. (GH) vs Medpace Holdings, Inc. (MEDP)

Guardant Health, Inc. and Medpace Holdings, Inc. are both Diagnostics & Research companies. Guardant Health, Inc. is the larger, with a market value of $22.3B against $17.6B — 1.3× the size. Guardant Health, Inc. has negative trailing earnings, so its P/E is not meaningful; Medpace Holdings, Inc. trades at 35.6×. Guardant Health, Inc. grew revenue faster over the last twelve months: 42.7% against 24.7%. Medpace Holdings, Inc. has the higher net margin (17.7% vs −38.3%) and the higher return on invested capital (0.00% vs −129.7%). Across the 18 metrics below, Medpace Holdings, Inc. leads on 13 and Guardant Health, Inc. on 5.

Valuation

Metric GH MEDP Diagnostics & Research median
P/E n/m 35.56 35.56
P/S 17.78 6.26 4.37
P/B n/m 40.16 3.06
Price to free cash flow n/m 24.66 35.76
EV/EBITDA n/m 27.87 24.35
EV/Sales 18.16 6.12 5.51
Earnings yield (2.20%) 2.81% (1.89%)
Free cash flow yield (1.23%) 4.06% (0.15%)

Profitability

Metric GH MEDP Diagnostics & Research median
Gross margin 65.01% 72.35% 50.89%
Operating margin (39.75%) 20.97% (8.57%)
Net margin (38.33%) 17.67% (6.37%)
Free cash flow margin (20.35%) 25.40% 0.00%
Return on equity 171.64% 162.15% (2.92%)
Return on assets (27.95%) 27.09% (6.71%)
Return on invested capital (129.70%) 0.00% 0.00%

Growth

Metric GH MEDP Diagnostics & Research median
Revenue growth (TTM) 42.74% 24.67% 7.69%
EPS growth (last fiscal year) 6.74% 20.98% 25.92%
Revenue growth, 5-year CAGR 27.92% 22.27% 7.40%
Net income growth, 5-year CAGR 0.00% 25.50% 0.00%

Health

Metric GH MEDP Diagnostics & Research median
Debt to equity (6.74) 0.00 0.11
Current ratio 4.03 0.73 2.02
Net debt to EBITDA (0.75) (0.88) 0.70

Dividend

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

Size

Metric GH MEDP Diagnostics & Research median
Market cap 22.26b 17.55b 2.16b

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