Castle Biosciences (CSTL) and Its Peers Head to Head Analysis

Castle Biosciences (NASDAQ:CSTL) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it weigh in compared to its peers? We will compare Castle Biosciences to similar companies based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, profitability, valuation and risk.

Institutional & Insider Ownership

92.6% of Castle Biosciences shares are held by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 6.1% of Castle Biosciences shares are held by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Castle Biosciences	$344.23 million	-$24.16 million	-44.81
Castle Biosciences Competitors	$21.12 billion	$301.67 million	-1.55

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Castle Biosciences	-6.10%	-4.89%	-4.06%
Castle Biosciences Competitors	-8.06%	-136.95%	-1.64%

Risk and Volatility

Castle Biosciences has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Castle Biosciences’ peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Castle Biosciences and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Castle Biosciences	1	1	8	1	2.82
Castle Biosciences Competitors	1871	7745	13372	828	2.55

Castle Biosciences presently has a consensus price target of $46.50, suggesting a potential upside of 34.78%. As a group, “Healthcare Providers & Services” companies have a potential upside of 13.95%. Given Castle Biosciences’ stronger consensus rating and higher possible upside, research analysts plainly believe Castle Biosciences is more favorable than its peers.

Summary

Castle Biosciences beats its peers on 8 of the 12 factors compared.

Castle Biosciences Company Profile

Castle Biosciences, Inc. is a molecular diagnostics company that develops and commercializes tests intended to help physicians make personalized treatment and care decisions. Its tests analyze biological features of tissue to provide information about disease behavior and patient risk. The company’s portfolio includes DecisionDx tests for conditions such as cutaneous melanoma, cutaneous squamous cell carcinoma and uveal melanoma. It also offers TissueCypher, a test designed to assess progression risk in patients with Barrett’s esophagus.