NeoGenomics, Inc. (NEO) vs Sotera Health Company (SHC)

NeoGenomics, Inc. and Sotera Health Company are both Diagnostics & Research companies. Sotera Health Company is the larger, with a market value of $5.3B against $2.5B — 2.1× the size. NeoGenomics, Inc. has negative trailing earnings, so its P/E is not meaningful; Sotera Health Company trades at 32.1×. NeoGenomics, Inc. grew revenue faster over the last twelve months: 11.2% against 8.15%. Sotera Health Company has the higher net margin (13.4% vs −6.77%) and the higher return on invested capital (9.82% vs −4.20%). Across the 18 metrics below, Sotera Health Company leads on 10 and NeoGenomics, Inc. on 8.

Valuation

Metric NEO SHC Diagnostics & Research median
P/E n/m 32.14 33.95
P/S 3.27 4.30 4.87
P/B 3.19 7.87 3.12
Price to free cash flow n/m 46.45 34.02
EV/EBITDA n/m 13.41 25.20
EV/Sales 3.84 5.85 5.66
Earnings yield (2.07%) 3.11% (1.75%)
Free cash flow yield (0.21%) 2.15% (0.13%)

Profitability

Metric NEO SHC Diagnostics & Research median
Gross margin 43.92% 54.97% 50.89%
Operating margin (8.93%) 32.82% (8.57%)
Net margin (6.77%) 13.44% (6.37%)
Free cash flow margin (0.69%) 9.27% 0.00%
Return on equity (6.33%) 27.78% (2.92%)
Return on assets (3.78%) 5.01% (6.71%)
Return on invested capital (4.20%) 9.82% 0.00%

Growth

Metric NEO SHC Diagnostics & Research median
Revenue growth (TTM) 11.19% 8.15% 7.69%
EPS growth (last fiscal year) (35.48%) 68.75% —
Revenue growth, 5-year CAGR 10.35% 7.30% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NEO SHC Diagnostics & Research median
Debt to equity 0.48 3.35 0.11
Current ratio 3.60 2.80 2.02
Net debt to EBITDA (3.96) 3.74 0.78

Dividend

Metric NEO SHC Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric NEO SHC Diagnostics & Research median
Market cap 2.50b 5.27b 2.56b

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