Sotera Health Company (SHC) vs Veracyte, Inc. (VCYT)

Sotera Health Company and Veracyte, Inc. are both Diagnostics & Research companies. Sotera Health Company is the larger, with a market value of $5.3B against $3.9B — 1.3× the size. Veracyte, Inc. trades at the lower P/E: 31.5× against 32.1×. Veracyte, Inc. grew revenue faster over the last twelve months: 17.3% against 8.15%. Veracyte, Inc. has the higher net margin (20.4% vs 13.4%) and the lower return on invested capital (7.32% vs 9.82%). Across the 21 metrics below, Veracyte, Inc. leads on 16 and Sotera Health Company on 5.

Valuation

Metric SHC VCYT Diagnostics & Research median
P/E 32.14 31.55 33.95
P/S 4.30 6.47 4.87
P/B 7.87 2.62 3.12
Price to free cash flow 46.45 21.89 34.02
EV/EBITDA 13.41 25.52 25.20
EV/Sales 5.85 5.63 5.66
Earnings yield 3.11% 3.17% (1.75%)
Free cash flow yield 2.15% 4.57% (0.13%)

Profitability

Metric SHC VCYT Diagnostics & Research median
Gross margin 54.97% 71.71% 50.89%
Operating margin 32.82% 18.82% (8.57%)
Net margin 13.44% 20.37% (6.37%)
Free cash flow margin 9.27% 29.54% 0.00%
Return on equity 27.78% 8.77% (2.92%)
Return on assets 5.01% 8.09% (6.71%)
Return on invested capital 9.82% 7.32% 0.00%

Growth

Metric SHC VCYT Diagnostics & Research median
Revenue growth (TTM) 8.15% 17.28% 7.69%
EPS growth (last fiscal year) 68.75% 164.52% —
Revenue growth, 5-year CAGR 7.30% 34.50% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SHC VCYT Diagnostics & Research median
Debt to equity 3.35 0.00 0.11
Current ratio 2.80 9.16 2.02
Net debt to EBITDA 3.74 (5.44) 0.78

Dividend

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

Size

Metric SHC VCYT Diagnostics & Research median
Market cap 5.27b 3.91b 2.56b

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