Veracyte (VCYT) and Its Peers Head to Head Analysis

Veracyte (NASDAQ:VCYT) is one of 846 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its peers? We will compare Veracyte to similar companies based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Veracyte	$581.78 million	$66.35 million	15.52
Veracyte Competitors	$729.47 million	$11.46 million	-14.85

Veracyte’s peers have higher revenue, but lower earnings than Veracyte. Veracyte 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.

Institutional & Insider Ownership

47.7% of shares of all “Biotechnology” companies are held by institutional investors. 1.6% of Veracyte shares are held by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

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	21.80%	8.99%	8.34%
Veracyte Competitors	-12,285.98%	-196.04%	-30.61%

Risk and Volatility

Veracyte has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Veracyte’s peers have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veracyte	1	5	6	0	2.42
Veracyte Competitors	9905	15274	45596	1595	2.54

Veracyte presently has a consensus price target of $46.00, suggesting a potential upside of 91.19%. As a group, “Biotechnology” companies have a potential upside of 99.39%. Given Veracyte’s peers stronger consensus rating and higher possible upside, analysts plainly believe Veracyte has less favorable growth aspects than its peers.

Summary

Veracyte peers beat Veracyte on 7 of the 13 factors compared.

About Veracyte

Veracyte, Inc. is a genomic diagnostics company that develops tests to help clinicians diagnose disease and guide treatment decisions, with a focus on cancer and other complex conditions. Its tests analyze biological samples to provide information that can help distinguish between conditions and assess disease risk. The company’s portfolio includes Afirma for thyroid nodule assessment, Decipher for prostate cancer, Prosigna for breast cancer, and Percepta for lung cancer. Veracyte also offers Envisia, a genomic test that supports the diagnosis of idiopathic pulmonary fibrosis and other forms of interstitial lung disease.