Financial Analysis: Castle Biosciences (NASDAQ:CSTL) & Gaxos.ai (NASDAQ:GXAI)

Gaxos.ai (NASDAQ:GXAIGet Free Report) and Castle Biosciences (NASDAQ:CSTLGet Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

Gaxos.ai has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Castle Biosciences has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

42.6% of Gaxos.ai shares are owned by institutional investors. Comparatively, 92.6% of Castle Biosciences shares are owned by institutional investors. 3.2% of Gaxos.ai shares are owned by company insiders. Comparatively, 6.1% of Castle Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Gaxos.ai and Castle Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gaxos.ai -131.28% -34.42% -33.12%
Castle Biosciences -5.43% -4.15% -3.45%

Earnings & Valuation

This table compares Gaxos.ai and Castle Biosciences”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gaxos.ai $1.93 million 3.17 -$3.90 million ($0.63) -1.36
Castle Biosciences $344.23 million 2.89 -$24.16 million ($0.66) -49.42

Gaxos.ai has higher earnings, but lower revenue than Castle Biosciences. Castle Biosciences is trading at a lower price-to-earnings ratio than Gaxos.ai, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Gaxos.ai and Castle Biosciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaxos.ai 1 0 0 0 1.00
Castle Biosciences 1 1 7 1 2.80

Castle Biosciences has a consensus price target of $42.00, suggesting a potential upside of 28.76%. Given Castle Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Castle Biosciences is more favorable than Gaxos.ai.

Summary

Castle Biosciences beats Gaxos.ai on 11 of the 15 factors compared between the two stocks.

About Gaxos.ai

(Get Free Report)

Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.

About Castle Biosciences

(Get Free Report)

Castle Biosciences, Inc., a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus. In addition, the company provides DecisionDx-UM test, a proprietary risk stratification GEP test that predicts the risk of metastasis for patients with uveal melanoma; and IDgenetix, a pharmacogenomic test that helps guide drug treatment for major depressive disorder, schizophrenia, bipolar disorder, anxiety disorders, social phobia, obsessive-compulsive personality disorder, post-traumatic stress disorder, and attention deficit hyperactivity disorder. It offers its products to skin cancer, gastroenterology, and mental health markets. The company was incorporated in 2007 and is headquartered in Friendswood, Texas.

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