Grail (NASDAQ:GRAL – Get Free Report) and Veracyte (NASDAQ:VCYT – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for Grail and Veracyte, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grail | 0 | 3 | 1 | 0 | 2.25 |
| Veracyte | 1 | 1 | 8 | 0 | 2.70 |
Grail currently has a consensus target price of $31.50, indicating a potential downside of 21.31%. Veracyte has a consensus target price of $40.90, indicating a potential upside of 46.86%. Given Veracyte’s stronger consensus rating and higher possible upside, analysts clearly believe Veracyte is more favorable than Grail.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Grail | N/A | N/A | N/A |
| Veracyte | -2.18% | 3.02% | 2.80% |
Valuation & Earnings
This table compares Grail and Veracyte”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grail | $130.71 million | 11.02 | -$2.19 billion | ($60.99) | -0.66 |
| Veracyte | $463.39 million | 4.71 | -$74.40 million | $0.41 | 67.93 |
Veracyte has higher revenue and earnings than Grail. Grail is trading at a lower price-to-earnings ratio than Veracyte, indicating that it is currently the more affordable of the two stocks.
Summary
Veracyte beats Grail on 8 of the 11 factors compared between the two stocks.
About Grail
GRAIL, Inc. operates as a commercial-stage healthcare company, which engages in the development of a technology for early detection of cancer. It utilizes machine learning, software, and automation to detect and identify multiple deadly cancer types in earlier stages. The company was founded by Jeffrey T. Huber, William H. Rastetter, Mostafa Ronaghi, and Richard D. Klausner on September 11, 2015 and is headquartered in Menlo Park, CA.
About Veracyte
Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.
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