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

GRAIL, Inc. and Sotera Health Company are both Diagnostics & Research companies. GRAIL, Inc. is the larger, with a market value of $5.3B against $4.5B — 1.2× the size. GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; Sotera Health Company trades at 26.3×. GRAIL, Inc. grew revenue faster over the last twelve months: 17.5% against 6.90%. Sotera Health Company has the higher net margin (14.1% vs −243.8%) and the higher return on invested capital (9.80% vs −14.7%). 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 26.27 34.52
P/S 34.93 3.69 4.24
P/B 2.37 6.19 3.42
Price to free cash flow n/m 33.51 33.51
EV/EBITDA n/m 11.86 23.44
EV/Sales 29.76 5.18 5.18
Earnings yield (7.64%) 3.81% (1.50%)
Free cash flow yield (5.36%) 2.98% 0.00%

Profitability

Metric GRAL SHC Diagnostics & Research median
Gross margin 0.00% 54.62% 48.32%
Operating margin (347.28%) 32.66% (5.68%)
Net margin (243.80%) 14.11% (4.10%)
Free cash flow margin (187.27%) 11.01% 0.00%
Return on equity (17.31%) 27.03% 0.00%
Return on assets (15.24%) 5.28% (6.05%)
Return on invested capital (14.74%) 9.80% 0.00%

Growth

Metric GRAL SHC Diagnostics & Research median
Revenue growth (TTM) 17.47% 6.90% 8.99%
EPS growth (last fiscal year) 82.51% 68.75% 20.36%
Revenue growth, 5-year CAGR — 7.30% 7.30%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric GRAL SHC Diagnostics & Research median
Debt to equity 0.00 3.06 0.01
Current ratio 8.93 3.13 2.27
Net debt to EBITDA 2.27 3.74 0.68

Dividend

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

Size

Metric GRAL SHC Diagnostics & Research median
Market cap 5.32b 4.53b 2.22b

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