Burning Rock Biotech (NASDAQ:BNR) versus Grail (NASDAQ:GRAL) Critical Analysis

Grail (NASDAQ:GRAL) and Burning Rock Biotech (NASDAQ:BNR) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grail and Burning Rock Biotech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grail	0	3	1	0	2.25
Burning Rock Biotech	0	0	0	0	0.00

Grail currently has a consensus target price of $26.00, indicating a potential downside of 25.16%. Given Grail’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Grail is more favorable than Burning Rock Biotech.

Earnings & Valuation

This table compares Grail and Burning Rock Biotech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grail	$125.60 million	9.76	N/A	N/A	N/A
Burning Rock Biotech	$515.82 million	0.05	-$92.07 million	($1.88)	-1.23

Grail has higher earnings, but lower revenue than Burning Rock Biotech.

Insider and Institutional Ownership

30.0% of Burning Rock Biotech shares are held by institutional investors. 30.3% of Burning Rock Biotech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Grail and Burning Rock Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grail	N/A	N/A	N/A
Burning Rock Biotech	-83.50%	-60.68%	-42.30%

Summary

Grail beats Burning Rock Biotech on 7 of the 10 factors compared between the two stocks.

About Grail

GRAIL, Inc. is a healthcare company. It engages in the development of a technology for early detection of cancer. The company was founded by Jeffrey T. Huber, William H. Rastetter, and Mostafa Ronaghi on September 11, 2015 and is headquartered in Menlo Park, CA.

About Burning Rock Biotech

Burning Rock Biotech Limited primarily develops and commercializes cancer therapy selection tests in the People's Republic of China. It operates in three segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. The company primarily offers next-generation sequencing-based tissue and liquid biopsy cancer therapy selection and prognosis prediction tests for various range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer using tissue and liquid biopsy samples. Its principal products include OncoCompass IO, a corresponding test for liquid biopsy samples; OncoScreen IO, a pan-cancer test for tissue samples; and OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC. In addition, the company provides ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and brPROPHET, a pre-operative ctDNA detection and post-operative MRD calling for relapsed patients. Further, it has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; licensing agreement with Oncocyte Corporation to in-license DetermaRx, a risk stratification test for early stage lung cancer patients in China; and collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, CStone, BeiGene, Abbisko Therapeutics, and IMPACT Therapeutics and Merck KGaA. Additionally, the company offers OncoMaster, an automatic NGS data analysis and report interpretation machine for in-hospital model. Burning Rock Biotech Limited was incorporated in 2014 and is headquartered in Guangzhou, China.