RadNet, Inc. (RDNT) vs Veracyte, Inc. (VCYT)

RadNet, Inc. and Veracyte, Inc. are both Diagnostics & Research companies. RadNet, Inc. is the larger, with a market value of $5.6B against $3.9B — 1.4× the size. RadNet, Inc. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 31.5×. RadNet, Inc. grew revenue faster over the last twelve months: 18.9% against 17.3%. Veracyte, Inc. has the higher net margin (20.4% vs −0.93%) and the higher return on invested capital (7.32% vs 2.24%). Across the 20 metrics below, Veracyte, Inc. leads on 16 and RadNet, Inc. on 4.

Valuation

Metric RDNT VCYT Diagnostics & Research median
P/E n/m 31.55 33.95
P/S 2.43 6.47 4.87
P/B 3.95 2.62 3.12
Price to free cash flow 170.43 21.89 34.02
EV/EBITDA 19.86 25.52 25.20
EV/Sales 2.69 5.63 5.66
Earnings yield (0.38%) 3.17% (1.75%)
Free cash flow yield 0.59% 4.57% (0.13%)

Profitability

Metric RDNT VCYT Diagnostics & Research median
Gross margin 11.53% 71.71% 50.89%
Operating margin 3.12% 18.82% (8.57%)
Net margin (0.93%) 20.37% (6.37%)
Free cash flow margin 3.28% 29.54% 0.00%
Return on equity (1.64%) 8.77% (2.92%)
Return on assets (0.55%) 8.09% (6.71%)
Return on invested capital 2.24% 7.32% 0.00%

Growth

Metric RDNT VCYT Diagnostics & Research median
Revenue growth (TTM) 18.92% 17.28% 7.69%
EPS growth (last fiscal year) (725.00%) 164.52% —
Revenue growth, 5-year CAGR 13.74% 34.50% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RDNT VCYT Diagnostics & Research median
Debt to equity 0.94 0.00 0.11
Current ratio 1.48 9.16 2.02
Net debt to EBITDA 1.16 (5.44) 0.78

Dividend

Metric RDNT VCYT Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric RDNT VCYT Diagnostics & Research median
Market cap 5.60b 3.91b 2.56b

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