Critical Review: Castle Biosciences (CSTL) versus The Competition

Castle Biosciences (NASDAQ: CSTL) is one of 29 publicly-traded companies in the “Medical laboratories” industry, but how does it contrast to its competitors? We will compare Castle Biosciences to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Castle Biosciences and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Castle Biosciences $51.87 million $5.28 million -34.69
Castle Biosciences Competitors $1.03 billion $53.91 million 35.05

Castle Biosciences’ competitors have higher revenue and earnings than Castle Biosciences. Castle Biosciences is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Castle Biosciences and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castle Biosciences 0 0 4 0 3.00
Castle Biosciences Competitors 236 801 981 71 2.42

Castle Biosciences currently has a consensus price target of $40.00, indicating a potential upside of 42.35%. As a group, “Medical laboratories” companies have a potential upside of 52.11%. Given Castle Biosciences’ competitors higher probable upside, analysts plainly believe Castle Biosciences has less favorable growth aspects than its competitors.

Profitability

This table compares Castle Biosciences and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castle Biosciences N/A N/A N/A
Castle Biosciences Competitors -122.08% -87.84% -28.65%

Institutional and Insider Ownership

29.7% of Castle Biosciences shares are held by institutional investors. Comparatively, 51.0% of shares of all “Medical laboratories” companies are held by institutional investors. 14.2% of shares of all “Medical laboratories” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Castle Biosciences competitors beat Castle Biosciences on 7 of the 12 factors compared.

About Castle Biosciences

Castle Biosciences, Inc., a commercial-stage dermatological cancer, develops and commercializes diagnostic and prognostic tests for cancers. Its lead product is DecisionDx-Melanoma, a multi-gene expression profile (GEP) test to identify stage I and II patients at high risk of metastasis based on biological information from 31 genes within their tumor tissue. The company also offers DecisionDx-UM test, a proprietary GEP test that predicts the risk of metastasis for patients with uveal melanoma, a rare eye cancer; and two late-stage proprietary products in development, which address cutaneous squamous cell carcinoma and suspicious pigmented lesions, which are indications with high clinical need in dermatological cancer. It offers test services through physicians, physician assistants, and nurse practitioners. The company was founded in 2007 and is headquartered in Friendswood, Texas.

Receive News & Ratings for Castle Biosciences Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Castle Biosciences and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply