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 $23.9B against $17.3B — 1.4× 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 35.59 33.95
P/S 19.91 6.27 4.87
P/B n/m 40.19 3.12
Price to free cash flow n/m 24.67 34.02
EV/EBITDA n/m 27.97 25.20
EV/Sales 20.29 6.14 5.66
Earnings yield (1.97%) 2.81% (1.75%)
Free cash flow yield (1.10%) 4.05% (0.13%)

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% —
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) 0.78

Dividend

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

Size

Metric GH MEDP Diagnostics & Research median
Market cap 23.94b 17.32b 2.56b

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