Head-To-Head Analysis: Grail (GRAL) vs. The Competition

Grail (NASDAQ:GRAL) is one of 48 public companies in the “Medical laboratories” industry, but how does it weigh in compared to its peers? We will compare Grail to related companies based on the strength of its risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

47.5% of shares of all “Medical laboratories” companies are owned by institutional investors. 1.9% of Grail shares are owned by insiders. Comparatively, 16.8% of shares of all “Medical laboratories” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Grail and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grail	0	3	1	0	2.25
Grail Competitors	365	1437	2416	42	2.50

Grail presently has a consensus target price of $31.50, indicating a potential downside of 18.22%. As a group, “Medical laboratories” companies have a potential upside of 1,384.49%. Given Grail’s peers stronger consensus rating and higher probable upside, analysts plainly believe Grail has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grail	N/A	N/A	N/A
Grail Competitors	-3,479.68%	-975.07%	-26.59%

Earnings & Valuation

This table compares Grail and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grail	$130.71 million	N/A	-0.63
Grail Competitors	$1.05 billion	-$110.55 million	-7.85

Grail’s peers have higher revenue, but lower earnings than Grail. Grail is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Grail peers beat Grail on 7 of the 11 factors compared.

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.