Sotera Health Company (SHC) vs GeneDx Holdings Corp. (WGS)

Sotera Health Company and GeneDx Holdings Corp. are both Diagnostics & Research companies. Sotera Health Company is the larger, with a market value of $5.3B against $2.6B — 2.0× the size. GeneDx Holdings Corp. has negative trailing earnings, so its P/E is not meaningful; Sotera Health Company trades at 32.1×. GeneDx Holdings Corp. grew revenue faster over the last twelve months: 25.4% against 8.15%. Sotera Health Company has the higher net margin (13.4% vs −23.4%) and the higher return on invested capital (9.82% vs −27.7%). Across the 18 metrics below, Sotera Health Company leads on 11 and GeneDx Holdings Corp. on 7.

Valuation

Metric SHC WGS Diagnostics & Research median
P/E 32.14 n/m 33.95
P/S 4.30 5.78 4.87
P/B 7.87 10.75 3.12
Price to free cash flow 46.45 n/m 34.02
EV/EBITDA 13.41 n/m 25.20
EV/Sales 5.85 5.70 5.66
Earnings yield 3.11% (4.12%) (1.75%)
Free cash flow yield 2.15% (2.89%) (0.13%)

Profitability

Metric SHC WGS Diagnostics & Research median
Gross margin 54.97% 69.37% 50.89%
Operating margin 32.82% (20.34%) (8.57%)
Net margin 13.44% (23.40%) (6.37%)
Free cash flow margin 9.27% (16.68%) 0.00%
Return on equity 27.78% (40.80%) (2.92%)
Return on assets 5.01% (22.50%) (6.71%)
Return on invested capital 9.82% (27.70%) 0.00%

Growth

Metric SHC WGS Diagnostics & Research median
Revenue growth (TTM) 8.15% 25.42% 7.69%
EPS growth (last fiscal year) 68.75% 62.37% —
Revenue growth, 5-year CAGR 7.30% 18.98% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SHC WGS Diagnostics & Research median
Debt to equity 3.35 0.40 0.11
Current ratio 2.80 3.30 2.02
Net debt to EBITDA 3.74 (10.13) 0.78

Dividend

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

Size

Metric SHC WGS Diagnostics & Research median
Market cap 5.27b 2.61b 2.56b

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