Critical Review: Burning Rock Biotech (NASDAQ:BNR) versus Exact Sciences (NASDAQ:EXAS)

Exact Sciences (NASDAQ:EXASGet Rating) and Burning Rock Biotech (NASDAQ:BNRGet Rating) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Exact Sciences and Burning Rock Biotech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exact Sciences 0 2 10 0 2.83
Burning Rock Biotech 0 0 2 0 3.00

Exact Sciences currently has a consensus price target of $111.17, suggesting a potential upside of 130.64%. Burning Rock Biotech has a consensus price target of $39.94, suggesting a potential upside of 1,031.44%. Given Burning Rock Biotech’s stronger consensus rating and higher probable upside, analysts clearly believe Burning Rock Biotech is more favorable than Exact Sciences.

Earnings & Valuation

This table compares Exact Sciences and Burning Rock Biotech’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exact Sciences $1.77 billion 4.80 -$595.63 million ($4.32) -11.16
Burning Rock Biotech $79.69 million 4.63 -$125.02 million ($1.18) -2.99

Burning Rock Biotech has lower revenue, but higher earnings than Exact Sciences. Exact Sciences is trading at a lower price-to-earnings ratio than Burning Rock Biotech, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.5% of Exact Sciences shares are held by institutional investors. Comparatively, 45.1% of Burning Rock Biotech shares are held by institutional investors. 1.4% of Exact Sciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Exact Sciences has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Burning Rock Biotech has a beta of -0.33, indicating that its share price is 133% less volatile than the S&P 500.

Profitability

This table compares Exact Sciences and Burning Rock Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exact Sciences -40.26% -21.82% -11.23%
Burning Rock Biotech -156.90% -37.96% -32.16%

Summary

Exact Sciences beats Burning Rock Biotech on 9 of the 14 factors compared between the two stocks.

About Exact Sciences (Get Rating)

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally. The company offers Cologuard, a non-invasive stool-based DNA screening test to detect DNA and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. It also provides Oncotype DX, a gene expression tests for breast, prostate, and colon cancers; Oncotype Test, a tissue test delivering tumor profiling to aid therapy selection for patients with advanced, metastatic, refractory, or recurrent cancer; Oncotype DX AR-V7 Nucleus Detect Test, a liquid-based test for advanced stage prostate cancer; Oncomap ExTra, that provides a complete biological picture of certain refractory, rare, or aggressive cancers; and Covid-19 testing services. The company's pipeline products focus on enhancing the Cologuard test's performance characteristics and developing blood and other fluid-based tests. It has license agreements with MAYO Foundation for Medical Education and Research; and Hologic, Inc. Exact Sciences Corporation was incorporated in 1995 and is headquartered in Madison, Wisconsin.

About Burning Rock Biotech (Get Rating)

Burning Rock Biotech Limited primarily develops and provides cancer therapy selection tests in the People's Republic of China. The company primarily offers 12 next-generation sequencing-based cancer therapy selection tests applicable to a range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer using tissue and liquid biopsy samples. Its principal products include OncoScreen IO, a pan-cancer test for tissue samples; OncoCompass IO, the corresponding test for liquid biopsy samples; OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC; ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and OncoScreen ParpMatch and OncoCompass ParpMatch to target critical genes associated with homologous recombination deficiency. The company also offers LungCore for lung cancer, ProstrateCore for prostrate cancer, BreastCore for breast cancer, LymphPlasma for lymphomas, and ThyroCare for thyroid cancer. In addition, it has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; and licensing agreement with Oncocyte Corporation to in-license DetermaRx, a risk stratification test for early stage lung cancer patients in China. Burning Rock Biotech Limited has collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, Sino Biopharm, CStone and BeiGene. The company was founded in 2014 and is headquartered in Guangzhou, China.

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