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

Veracyte, Inc. and GeneDx Holdings Corp. are both Diagnostics & Research companies. Veracyte, Inc. is the larger, with a market value of $3.9B against $2.6B — 1.5× the size. GeneDx Holdings Corp. has negative trailing earnings, so its P/E is not meaningful; Veracyte, Inc. trades at 31.5×. GeneDx Holdings Corp. grew revenue faster over the last twelve months: 25.4% against 17.3%. Veracyte, Inc. has the higher net margin (20.4% vs −23.4%) and the higher return on invested capital (7.32% vs −27.7%). Across the 18 metrics below, Veracyte, Inc. leads on 15 and GeneDx Holdings Corp. on 3.

Valuation

Metric VCYT WGS Diagnostics & Research median
P/E 31.55 n/m 33.95
P/S 6.47 5.78 4.87
P/B 2.62 10.75 3.12
Price to free cash flow 21.89 n/m 34.02
EV/EBITDA 25.52 n/m 25.20
EV/Sales 5.63 5.70 5.66
Earnings yield 3.17% (4.12%) (1.75%)
Free cash flow yield 4.57% (2.89%) (0.13%)

Profitability

Metric VCYT WGS Diagnostics & Research median
Gross margin 71.71% 69.37% 50.89%
Operating margin 18.82% (20.34%) (8.57%)
Net margin 20.37% (23.40%) (6.37%)
Free cash flow margin 29.54% (16.68%) 0.00%
Return on equity 8.77% (40.80%) (2.92%)
Return on assets 8.09% (22.50%) (6.71%)
Return on invested capital 7.32% (27.70%) 0.00%

Growth

Metric VCYT WGS Diagnostics & Research median
Revenue growth (TTM) 17.28% 25.42% 7.69%
EPS growth (last fiscal year) 164.52% 62.37% —
Revenue growth, 5-year CAGR 34.50% 18.98% 7.40%
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 0.11
Current ratio 9.16 3.30 2.02
Net debt to EBITDA (5.44) (10.13) 0.78

Dividend

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

Size

Metric VCYT WGS Diagnostics & Research median
Market cap 3.91b 2.61b 2.56b

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