Contrasting Veracyte (VCYT) & Its Peers

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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Veracyte $71.95 million -$31.00 million -6.91
Veracyte Competitors $1.13 billion $76.65 million 205.57

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

Institutional and 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Veracyte has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Veracyte’s competitors have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Veracyte and its competitors’ 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 -118.64% -181.74% -42.76%

Analyst Recommendations

This is a summary of current recommendations and price targets for Veracyte and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veracyte 0 2 3 0 2.60
Veracyte Competitors 109 458 535 18 2.41

Veracyte currently has a consensus price target of $11.08, indicating a potential upside of 76.15%. As a group, “Medical laboratories” companies have a potential upside of 15.52%. Given Veracyte’s stronger consensus rating and higher possible upside, analysts plainly believe Veracyte is more favorable than its competitors.

Summary

Veracyte beats its competitors on 8 of the 13 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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