GRAIL, Inc. (GRAL) vs Veracyte, Inc. (VCYT)

GRAIL, Inc. and Veracyte, Inc. are both Diagnostics & Research companies. GRAIL, Inc. is the larger, with a market value of $5.3B against $1.9B — 2.8× the size. GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 15.2×. Veracyte, Inc. grew revenue faster over the last twelve months: 17.5% against 17.5%. Veracyte, Inc. has the higher net margin (21.8% vs −243.8%) and the higher return on invested capital (4.33% vs −14.7%). Across the 16 metrics below, Veracyte, Inc. leads on 15 and GRAIL, Inc. on 1.

Valuation

Metric GRAL VCYT Diagnostics & Research median
P/E n/m 15.16 34.52
P/S 34.93 3.34 4.24
P/B 2.37 1.35 3.42
Price to free cash flow n/m 11.98 33.51
EV/EBITDA n/m 11.76 23.44
EV/Sales 29.76 2.51 5.18
Earnings yield (7.64%) 6.59% (1.50%)
Free cash flow yield (5.36%) 8.34% 0.00%

Profitability

Metric GRAL VCYT Diagnostics & Research median
Gross margin 0.00% 71.98% 48.32%
Operating margin (347.28%) 17.08% (5.68%)
Net margin (243.80%) 21.80% (4.10%)
Free cash flow margin (187.27%) 27.84% 0.00%
Return on equity (17.31%) 9.43% 0.00%
Return on assets (15.24%) 8.63% (6.05%)
Return on invested capital (14.74%) 4.33% 0.00%

Growth

Metric GRAL VCYT Diagnostics & Research median
Revenue growth (TTM) 17.47% 17.50% 8.99%
EPS growth (last fiscal year) 82.51% 164.52% 20.36%
Revenue growth, 5-year CAGR — 34.50% 7.30%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric GRAL VCYT Diagnostics & Research median
Debt to equity 0.00 0.00 0.01
Current ratio 8.93 5.56 2.27
Net debt to EBITDA 2.27 (5.44) 0.68

Dividend

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

Size

Metric GRAL VCYT Diagnostics & Research median
Market cap 5.32b 1.93b 2.22b

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