GRAIL, Inc. (GRAL) vs GeneDx Holdings Corp. (WGS)

GRAIL, Inc. and GeneDx Holdings Corp. are both Diagnostics & Research companies. GRAIL, Inc. is the larger, with a market value of $5.5B against $2.6B — 2.1× the size. GeneDx Holdings Corp. grew revenue faster over the last twelve months: 25.4% against 23.1%. GeneDx Holdings Corp. has the higher net margin (−23.4% vs −237.0%) and the lower return on invested capital (−27.7% vs −20.8%). Across the 17 metrics below, GeneDx Holdings Corp. leads on 10 and GRAIL, Inc. on 7.

Valuation

Metric GRAL WGS Diagnostics & Research median
P/E n/m n/m 33.95
P/S 33.10 5.78 4.87
P/B 2.15 10.75 3.12
Price to free cash flow n/m n/m 34.02
EV/EBITDA n/m n/m 25.20
EV/Sales 27.89 5.70 5.66
Earnings yield (7.68%) (4.12%) (1.75%)
Free cash flow yield (5.41%) (2.89%) (0.13%)

Profitability

Metric GRAL WGS Diagnostics & Research median
Gross margin (31.31%) 69.37% 50.89%
Operating margin (338.40%) (20.34%) (8.57%)
Net margin (236.95%) (23.40%) (6.37%)
Free cash flow margin (179.21%) (16.68%) 0.00%
Return on equity (16.12%) (40.80%) (2.92%)
Return on assets (14.12%) (22.50%) (6.71%)
Return on invested capital (20.79%) (27.70%) 0.00%

Growth

Metric GRAL WGS Diagnostics & Research median
Revenue growth (TTM) 23.07% 25.42% 7.69%
EPS growth (last fiscal year) 82.51% 62.37% —
Revenue growth, 5-year CAGR — 18.98% 7.40%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric GRAL WGS Diagnostics & Research median
Debt to equity 0.00 0.40 0.11
Current ratio 10.95 3.30 2.02
Net debt to EBITDA 2.27 (10.13) 0.78

Dividend

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

Size

Metric GRAL WGS Diagnostics & Research median
Market cap 5.54b 2.61b 2.56b

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