Reviewing Castle Biosciences (CSTL) & Its Rivals

Castle Biosciences (NASDAQ:CSTL) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it compare to its rivals? We will compare Castle Biosciences to related companies based on the strength of its dividends, analyst recommendations, institutional ownership, profitability, earnings, valuation and risk.

Risk and Volatility

Castle Biosciences has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Castle Biosciences’ rivals have a beta of 0.98, indicating that their average stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Castle Biosciences and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Castle Biosciences	1	1	8	1	2.82
Castle Biosciences Competitors	1861	7724	13345	820	2.55

Castle Biosciences currently has a consensus price target of $45.50, indicating a potential upside of 32.34%. As a group, “Healthcare Providers & Services” companies have a potential upside of 13.43%. Given Castle Biosciences’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Castle Biosciences is more favorable than its rivals.

Profitability

This table compares Castle Biosciences and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Castle Biosciences	-5.43%	-4.15%	-3.45%
Castle Biosciences Competitors	-8.02%	-140.32%	-1.38%

Earnings and Valuation

This table compares Castle Biosciences and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Castle Biosciences	$344.23 million	-$24.16 million	-44.65
Castle Biosciences Competitors	$21.12 billion	$288.54 million	7.20

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

Insider and Institutional Ownership

92.6% of Castle Biosciences shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 6.1% of Castle Biosciences shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Castle Biosciences beats its rivals on 8 of the 13 factors compared.

About Castle Biosciences

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.