Veracyte, Inc. (VCYT) vs GeneDx Holdings Corp. (WGS)

Veracyte, Inc. and GeneDx Holdings Corp. are both Diagnostics & Research companies. Veracyte, Inc. and GeneDx Holdings Corp. are of similar size ($1.9B and $1.9B). GeneDx Holdings Corp. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 15.2×. GeneDx Holdings Corp. grew revenue faster over the last twelve months: 25.4% against 17.5%. Veracyte, Inc. has the higher net margin (21.8% vs −23.4%) and the higher return on invested capital (4.33% vs −27.7%). Across the 18 metrics below, Veracyte, Inc. leads on 16 and GeneDx Holdings Corp. on 2.

Valuation

Metric VCYT WGS Diagnostics & Research median
P/E 15.16 n/m 34.52
P/S 3.34 4.24 4.24
P/B 1.35 7.89 3.42
Price to free cash flow 11.98 n/m 33.51
EV/EBITDA 11.76 n/m 23.44
EV/Sales 2.51 4.16 5.18
Earnings yield 6.59% (5.61%) (1.50%)
Free cash flow yield 8.34% (3.93%) 0.00%

Profitability

Metric VCYT WGS Diagnostics & Research median
Gross margin 71.98% 69.37% 48.32%
Operating margin 17.08% (20.34%) (5.68%)
Net margin 21.80% (23.40%) (4.10%)
Free cash flow margin 27.84% (16.68%) 0.00%
Return on equity 9.43% (40.80%) 0.00%
Return on assets 8.63% (22.50%) (6.05%)
Return on invested capital 4.33% (27.70%) 0.00%

Growth

Metric VCYT WGS Diagnostics & Research median
Revenue growth (TTM) 17.50% 25.42% 8.99%
EPS growth (last fiscal year) 164.52% 62.37% 20.36%
Revenue growth, 5-year CAGR 34.50% 18.98% 7.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric VCYT WGS Diagnostics & Research median
Debt to equity 0.00 0.40 0.01
Current ratio 5.56 3.30 2.27
Net debt to EBITDA (5.44) (10.13) 0.68

Dividend

Metric VCYT WGS Diagnostics & Research median
Dividend yield — — 0.67%
Payout ratio — — 0.20

Size

Metric VCYT WGS Diagnostics & Research median
Market cap 1.93b 1.92b 2.22b

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