MiMedx Group, Inc (MDXG) vs Verastem, Inc. (VSTM)

MiMedx Group, Inc and Verastem, Inc. are both Biotechnology companies. MiMedx Group, Inc and Verastem, Inc. are of similar size ($694.6M and $686.5M). Verastem, Inc. has negative trailing earnings, so its P/E is not meaningful; MiMedx Group, Inc trades at 117×. Verastem, Inc. grew revenue faster over the last twelve months: 472.9% against −2.36%. MiMedx Group, Inc has the higher net margin (1.76% vs −231.6%) and the higher return on invested capital (5.62% vs 0.00%). Across the 18 metrics below, MiMedx Group, Inc leads on 14 and Verastem, Inc. on 4.

Valuation

Metric MDXG VSTM Biotechnology median
P/E 116.75 n/m 7.88
P/S 1.94 8.89 11.47
P/B 3.20 15.56 2.52
Price to free cash flow 15.53 n/m 21.16
EV/EBITDA 28.01 n/m 0.74
EV/Sales 1.61 8.29 10.73
Earnings yield 0.86% (31.66%) (28.84%)
Free cash flow yield 6.44% (20.85%) (23.03%)

Profitability

Metric MDXG VSTM Biotechnology median
Gross margin 78.85% 86.35% 65.16%
Operating margin 2.46% (182.57%) 0.00%
Net margin 1.76% (231.59%) 0.00%
Free cash flow margin 12.51% (185.31%) 0.00%
Return on equity 2.88% (471.16%) (57.72%)
Return on assets 2.18% (100.65%) (49.22%)
Return on invested capital 5.62% 0.00% 0.00%

Growth

Metric MDXG VSTM Biotechnology median
Revenue growth (TTM) (2.36%) 472.89% 5.64%
EPS growth (last fiscal year) 14.29% 17.49% —
Revenue growth, 5-year CAGR 11.02% 12.11% 8.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MDXG VSTM Biotechnology median
Debt to equity 0.08 1.48 0.00
Current ratio 5.33 2.25 4.73
Net debt to EBITDA (1.88) 0.76 0.96

Dividend

Metric MDXG VSTM Biotechnology median
Dividend yield — — 2.10%
Payout ratio 0.00 0.00 0.00

Size

Metric MDXG VSTM Biotechnology median
Market cap 686.53m 694.62m 162.10m

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