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

NeoGenomics, Inc. and Veracyte, Inc. are both Diagnostics & Research companies. Veracyte, Inc. is the larger, with a market value of $3.6B against $2.2B — 1.6× the size. NeoGenomics, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 29.9×. Veracyte, Inc. grew revenue faster over the last twelve months: 17.3% against 11.2%. Veracyte, Inc. has the higher net margin (20.4% vs −6.77%) and the higher return on invested capital (7.32% vs −4.20%). Across the 18 metrics below, Veracyte, Inc. leads on 16 and NeoGenomics, Inc. on 2.

Valuation

Metric NEO VCYT Diagnostics & Research median
P/E n/m 29.94 35.56
P/S 2.82 6.14 4.37
P/B 2.75 2.48 3.06
Price to free cash flow n/m 20.78 35.76
EV/EBITDA n/m 23.93 24.35
EV/Sales 3.38 5.28 5.51
Earnings yield (2.40%) 3.34% (1.89%)
Free cash flow yield (0.25%) 4.81% (0.15%)

Profitability

Metric NEO VCYT Diagnostics & Research median
Gross margin 43.92% 71.71% 50.89%
Operating margin (8.93%) 18.82% (8.57%)
Net margin (6.77%) 20.37% (6.37%)
Free cash flow margin (0.69%) 29.54% 0.00%
Return on equity (6.33%) 8.77% (2.92%)
Return on assets (3.78%) 8.09% (6.71%)
Return on invested capital (4.20%) 7.32% 0.00%

Growth

Metric NEO VCYT Diagnostics & Research median
Revenue growth (TTM) 11.19% 17.28% 7.69%
EPS growth (last fiscal year) (35.48%) 164.52% 25.92%
Revenue growth, 5-year CAGR 10.35% 34.50% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NEO VCYT Diagnostics & Research median
Debt to equity 0.48 0.00 0.11
Current ratio 3.60 9.16 2.02
Net debt to EBITDA (3.96) (5.44) 0.70

Dividend

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

Size

Metric NEO VCYT Diagnostics & Research median
Market cap 2.22b 3.57b 2.16b

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