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 $5.5B against $3.9B — 1.4× the size. GRAIL, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 31.5×. GRAIL, Inc. grew revenue faster over the last twelve months: 23.1% against 17.3%. Veracyte, Inc. has the higher net margin (20.4% vs −237.0%) and the higher return on invested capital (7.32% vs −20.8%). Across the 16 metrics below, Veracyte, Inc. leads on 13 and GRAIL, Inc. on 3.

Valuation

Metric GRAL VCYT Diagnostics & Research median
P/E n/m 31.55 33.95
P/S 33.10 6.47 4.87
P/B 2.15 2.62 3.12
Price to free cash flow n/m 21.89 34.02
EV/EBITDA n/m 25.52 25.20
EV/Sales 27.89 5.63 5.66
Earnings yield (7.68%) 3.17% (1.75%)
Free cash flow yield (5.41%) 4.57% (0.13%)

Profitability

Metric GRAL VCYT Diagnostics & Research median
Gross margin (31.31%) 71.71% 50.89%
Operating margin (338.40%) 18.82% (8.57%)
Net margin (236.95%) 20.37% (6.37%)
Free cash flow margin (179.21%) 29.54% 0.00%
Return on equity (16.12%) 8.77% (2.92%)
Return on assets (14.12%) 8.09% (6.71%)
Return on invested capital (20.79%) 7.32% 0.00%

Growth

Metric GRAL VCYT Diagnostics & Research median
Revenue growth (TTM) 23.07% 17.28% 7.69%
EPS growth (last fiscal year) 82.51% 164.52% —
Revenue growth, 5-year CAGR — 34.50% 7.40%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric GRAL VCYT Diagnostics & Research median
Debt to equity 0.00 0.00 0.11
Current ratio 10.95 9.16 2.02
Net debt to EBITDA 2.27 (5.44) 0.78

Dividend

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

Size

Metric GRAL VCYT Diagnostics & Research median
Market cap 5.54b 3.91b 2.56b

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