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Castle Biosciences (NASDAQ:CSTL) Vs. Sera Prognostics (NASDAQ:SERA) Critical Analysis

Financial News Live ·  Nov 21, 2022 15:41

Sera Prognostics (NASDAQ:SERA – Get Rating) and Castle Biosciences (NASDAQ:CSTL – Get Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares Sera Prognostics and Castle Biosciences' net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Sera Prognostics -20,490.83% -38.32% -35.85%
Castle Biosciences -42.79% -11.87% -10.69%

Analyst Ratings

This is a summary of recent recommendations for Sera Prognostics and Castle Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sera Prognostics 0 1 3 0 2.75
Castle Biosciences 0 0 5 0 3.00
Sera Prognostics currently has a consensus target price of $6.25, indicating a potential upside of 382.63%. Castle Biosciences has a consensus target price of $57.86, indicating a potential upside of 179.10%. Given Sera Prognostics' higher possible upside, equities research analysts clearly believe Sera Prognostics is more favorable than Castle Biosciences.

Risk & Volatility

Sera Prognostics has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Castle Biosciences has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

31.4% of Sera Prognostics shares are held by institutional investors. Comparatively, 86.1% of Castle Biosciences shares are held by institutional investors. 11.6% of Sera Prognostics shares are held by insiders. Comparatively, 7.3% of Castle Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Sera Prognostics and Castle Biosciences' top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sera Prognostics $80,000.00 502.09 -$35.01 million ($1.53) -0.85
Castle Biosciences $94.08 million 5.81 -$31.29 million ($2.05) -10.11

Castle Biosciences has higher revenue and earnings than Sera Prognostics. Castle Biosciences is trading at a lower price-to-earnings ratio than Sera Prognostics, indicating that it is currently the more affordable of the two stocks.

Summary

Castle Biosciences beats Sera Prognostics on 9 of the 13 factors compared between the two stocks.

About Sera Prognostics

(Get Rating)

Sera Prognostics, Inc., a women's health diagnostic company, discovers, develops, and commercializes biomarker tests for improving pregnancy outcomes. The company develops PreTRM test, a blood-based biomarker test to predict the risk of spontaneous preterm birth in asymptomatic singleton pregnancies. It is also developing a portfolio of product candidates for various pregnancy-related conditions, including preeclampsia, molecular time-to-birth, gestational diabetes mellitus, fetal growth restriction, stillbirth, and postpartum depression. The company was incorporated in 2008 and is headquartered in Salt Lake City, Utah.

About Castle Biosciences

(Get Rating)

Castle Biosciences, Inc., a commercial-stage diagnostics company, focuses to provide diagnostic and prognostic testing services for dermatological cancers. Its lead product is DecisionDx-Melanoma, a multi-gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma. The company also offers DecisionDx-UM test, a proprietary GEP test that predicts the risk of metastasis for patients with uveal melanoma, a rare eye cancer; DecisionDx-SCC, a proprietary 40-gene expression profile test that uses an individual patient's tumor biology to predict individual risk of squamous cell carcinoma metastasis for patients with one or more risk factors; and DecisionDx DiffDx-Melanoma and myPath Melanoma, a proprietary GEP test to diagnose suspicious pigmented lesions. It offers test services through physicians and their patients. The company was founded in 2007 and is headquartered in Friendswood, Texas.

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