NeoGenomics, Inc. (NEO) vs Veracyte, Inc. (VCYT)

NeoGenomics, Inc. and Veracyte, Inc. are both Diagnostics & Research companies. NeoGenomics, Inc. is the larger, with a market value of $2.1B against $1.9B — 1.1× the size. NeoGenomics, 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 11.1%. Veracyte, Inc. has the higher net margin (21.8% vs −4.10%) and the higher return on invested capital (5.85% vs −2.97%). Across the 19 metrics below, Veracyte, Inc. leads on 18 and NeoGenomics, Inc. on 1.

Valuation

Metric NEO VCYT Diagnostics & Research median
P/E n/m 15.17 35.23
P/S 2.76 3.34 4.08
P/B 2.71 1.40 3.45
Price to free cash flow n/m 12.00 33.72
EV/EBITDA 149.24 12.71 25.01
EV/Sales 3.32 2.71 5.20
Earnings yield (1.47%) 6.59% (1.47%)
Free cash flow yield (1.22%) 8.33% 0.00%

Profitability

Metric NEO VCYT Diagnostics & Research median
Gross margin 44.77% 71.98% 48.32%
Operating margin (6.27%) 17.08% (5.68%)
Net margin (4.10%) 21.80% (4.10%)
Free cash flow margin (3.37%) 27.84% 0.00%
Return on equity (3.94%) 9.43% 0.00%
Return on assets (2.35%) 8.63% (6.05%)
Return on invested capital (2.97%) 5.85% 0.00%

Growth

Metric NEO VCYT Diagnostics & Research median
Revenue growth (TTM) 11.08% 17.50% 9.15%
EPS growth (last fiscal year) (35.48%) 164.52% 20.36%
Revenue growth, 5-year CAGR 10.35% 34.50% 7.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NEO VCYT Diagnostics & Research median
Debt to equity 0.47 0.00 0.04
Current ratio 3.53 5.56 2.27
Net debt to EBITDA (3.96) (5.44) 0.68

Dividend

Metric NEO VCYT Diagnostics & Research median
Dividend yield — — 0.66%
Payout ratio — — 0.20

Size

Metric NEO VCYT Diagnostics & Research median
Market cap 2.13b 1.93b 1.93b

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