GRAIL, Inc. (GRAL) vs ICON PLC (ICLR)

GRAIL, Inc. and ICON PLC are both Diagnostics & Research companies. ICON PLC is the larger, with a market value of $15.1B against $5.3B — 2.8× the size. GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; ICON PLC trades at 34.5×. GRAIL, Inc. grew revenue faster over the last twelve months: 17.5% against 1.82%. ICON PLC has the higher net margin (5.45% vs −243.8%) and the higher return on invested capital (3.84% vs −14.7%). Across the 17 metrics below, ICON PLC leads on 12 and GRAIL, Inc. on 5.

Valuation

Metric GRAL ICLR Diagnostics & Research median
P/E n/m 34.48 34.52
P/S 34.93 1.88 4.24
P/B 2.37 1.70 3.42
Price to free cash flow n/m 18.10 33.51
EV/EBITDA n/m 17.86 23.44
EV/Sales 29.76 2.35 5.18
Earnings yield (7.64%) 2.90% (1.50%)
Free cash flow yield (5.36%) 5.53% 0.00%

Profitability

Metric GRAL ICLR Diagnostics & Research median
Gross margin 0.00% 23.43% 48.32%
Operating margin (347.28%) 8.72% (5.68%)
Net margin (243.80%) 5.45% (4.10%)
Free cash flow margin (187.27%) 10.41% 0.00%
Return on equity (17.31%) 4.86% 0.00%
Return on assets (15.24%) 2.74% (6.05%)
Return on invested capital (14.74%) 3.84% 0.00%

Growth

Metric GRAL ICLR Diagnostics & Research median
Revenue growth (TTM) 17.47% 1.82% 8.99%
EPS growth (last fiscal year) 82.51% (67.42%) 20.36%
Revenue growth, 5-year CAGR — 24.15% 7.30%
Net income growth, 5-year CAGR — (7.15%) 0.00%

Health

Metric GRAL ICLR Diagnostics & Research median
Debt to equity 0.00 0.37 0.01
Current ratio 8.93 1.32 2.27
Net debt to EBITDA 2.27 3.34 0.68

Dividend

Metric GRAL ICLR Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric GRAL ICLR Diagnostics & Research median
Market cap 5.32b 15.11b 2.22b

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