Psychemedics Corporation (PMD) vs T2 Biosystems, Inc. (TTOO)

Psychemedics Corporation and T2 Biosystems, Inc. are both Diagnostics & Research companies. Psychemedics Corporation is the larger, with a market value of $15.7M against $6.5M — 2.4× the size. Psychemedics Corporation grew revenue faster over the last twelve months: −10.9% against −30.2%. Psychemedics Corporation has the higher net margin (−9.45% vs −559.5%) and the lower return on invested capital (−31.4% vs 0.00%). Across the 16 metrics below, Psychemedics Corporation leads on 9 and T2 Biosystems, Inc. on 7.

Valuation

Metric PMD TTOO Diagnostics & Research median
P/E n/m n/m 33.95
P/S 0.80 n/m 4.87
P/B 3.05 n/m 3.12
Price to free cash flow 19.46 n/m 34.02
EV/EBITDA 77.29 n/m 25.20
EV/Sales 0.74 0.64 5.66
Earnings yield (11.99%) 0.00% (1.75%)
Free cash flow yield 5.14% 0.00% (0.13%)

Profitability

Metric PMD TTOO Diagnostics & Research median
Gross margin 36.07% (76.76%) 50.89%
Operating margin (9.62%) (542.59%) (8.57%)
Net margin (9.45%) (559.52%) (6.37%)
Free cash flow margin 4.02% (476.64%) 0.00%
Return on equity (31.54%) 277.61% (2.92%)
Return on assets (18.03%) (140.00%) (6.71%)
Return on invested capital (31.42%) 0.00% 0.00%

Growth

Metric PMD TTOO Diagnostics & Research median
Revenue growth (TTM) (10.92%) (30.19%) 7.69%
EPS growth (last fiscal year) 55.56% 98.44% —
Revenue growth, 5-year CAGR (12.18%) (7.29%) 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PMD TTOO Diagnostics & Research median
Debt to equity 0.01 0.00 0.11
Current ratio 1.82 0.40 2.02
Net debt to EBITDA (7.26) 0.32 0.78

Dividend

Metric PMD TTOO Diagnostics & Research median
Dividend yield 4.79% — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric PMD TTOO Diagnostics & Research median
Market cap 15.70m 6.48m 2.56b

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