GRAIL, Inc. (GRAL) vs Sotera Health Company (SHC)

GRAIL, Inc. and Sotera Health Company are both Diagnostics & Research companies. GRAIL, Inc. and Sotera Health Company are of similar size ($5.5B and $5.3B). GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; Sotera Health Company trades at 32.1×. GRAIL, Inc. grew revenue faster over the last twelve months: 23.1% against 8.15%. Sotera Health Company has the higher net margin (13.4% vs −237.0%) and the higher return on invested capital (9.82% vs −20.8%). Across the 17 metrics below, Sotera Health Company leads on 11 and GRAIL, Inc. on 6.

Valuation

Metric GRAL SHC Diagnostics & Research median
P/E n/m 32.14 33.95
P/S 33.10 4.30 4.87
P/B 2.15 7.87 3.12
Price to free cash flow n/m 46.45 34.02
EV/EBITDA n/m 13.41 25.20
EV/Sales 27.89 5.85 5.66
Earnings yield (7.68%) 3.11% (1.75%)
Free cash flow yield (5.41%) 2.15% (0.13%)

Profitability

Metric GRAL SHC Diagnostics & Research median
Gross margin (31.31%) 54.97% 50.89%
Operating margin (338.40%) 32.82% (8.57%)
Net margin (236.95%) 13.44% (6.37%)
Free cash flow margin (179.21%) 9.27% 0.00%
Return on equity (16.12%) 27.78% (2.92%)
Return on assets (14.12%) 5.01% (6.71%)
Return on invested capital (20.79%) 9.82% 0.00%

Growth

Metric GRAL SHC Diagnostics & Research median
Revenue growth (TTM) 23.07% 8.15% 7.69%
EPS growth (last fiscal year) 82.51% 68.75% —
Revenue growth, 5-year CAGR — 7.30% 7.40%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric GRAL SHC Diagnostics & Research median
Debt to equity 0.00 3.35 0.11
Current ratio 10.95 2.80 2.02
Net debt to EBITDA 2.27 3.74 0.78

Dividend

Metric GRAL SHC Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio — 0.00 0.00

Size

Metric GRAL SHC Diagnostics & Research median
Market cap 5.54b 5.27b 2.56b

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