Critical Review: Veracyte (VCYT) & Its Rivals

Veracyte (NASDAQ: VCYT) is one of 21 publicly-traded companies in the “Medical laboratories” industry, but how does it contrast to its peers? We will compare Veracyte to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Veracyte and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Veracyte $71.95 million -$31.00 million -6.31
Veracyte Competitors $1.13 billion $76.65 million 211.34



Veracyte’s peers have higher revenue and earnings than Veracyte. Veracyte 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 Veracyte and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veracyte -43.09% -68.43% -36.13%
Veracyte Competitors -118.65% -181.74% -42.76%

Institutional & Insider Ownership

70.5% of Veracyte shares are owned by institutional investors. Comparatively, 50.4% of shares of all “Medical laboratories” companies are owned by institutional investors. 13.4% of Veracyte shares are owned by insiders. Comparatively, 18.5% of shares of all “Medical laboratories” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veracyte 0 2 3 0 2.60
Veracyte Competitors 110 454 530 17 2.41

Veracyte currently has a consensus price target of $11.08, suggesting a potential upside of 93.03%. As a group, “Medical laboratories” companies have a potential upside of 14.98%. Given Veracyte’s stronger consensus rating and higher possible upside, research analysts plainly believe Veracyte is more favorable than its peers.

Volatility & Risk

Veracyte has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Veracyte’s peers have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Summary

Veracyte beats its peers on 8 of the 12 factors compared.

Veracyte Company Profile

Veracyte, Inc. operates as a genomic diagnostics company in the United States. The company uses genomic technology to resolve diagnostic uncertainty. It offers Afirma Thyroid FNA Analysis solution; cytopathology testing services; and the Afirma Malignancy Classifiers to manage thyroid nodule patients. The company's products also include Percepta Bronchial Genomic Classifier solution for use in lung cancer screening and diagnosis; and Envisia Genomic Classifier solution for idiopathic pulmonary fibrosis. It sells its products through its product specialists, institutional managers, account managers, and medical science specialists. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.

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