Financial Analysis: Burning Rock Biotech (NASDAQ:BNR) versus American Shared Hospital Services (NYSE:AMS)

American Shared Hospital Services (NYSE:AMSGet Rating) and Burning Rock Biotech (NASDAQ:BNRGet Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

13.3% of American Shared Hospital Services shares are owned by institutional investors. Comparatively, 45.1% of Burning Rock Biotech shares are owned by institutional investors. 34.3% of American Shared Hospital Services shares are owned 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.

Earnings and Valuation

This table compares American Shared Hospital Services and Burning Rock Biotech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Shared Hospital Services $17.63 million 0.82 $190,000.00 $0.08 29.68
Burning Rock Biotech $79.69 million 4.09 -$125.02 million ($1.18) -2.63

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for American Shared Hospital Services and Burning Rock Biotech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Shared Hospital Services 0 0 0 0 N/A
Burning Rock Biotech 0 0 2 0 3.00

Burning Rock Biotech has a consensus price target of $39.94, suggesting a potential upside of 1,188.39%. Given Burning Rock Biotech’s higher probable upside, analysts plainly believe Burning Rock Biotech is more favorable than American Shared Hospital Services.

Profitability

This table compares American Shared Hospital Services and Burning Rock Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Shared Hospital Services 2.40% 3.69% 2.00%
Burning Rock Biotech -156.90% -37.96% -32.16%

Volatility and Risk

American Shared Hospital Services has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Burning Rock Biotech has a beta of -0.33, suggesting that its stock price is 133% less volatile than the S&P 500.

Summary

American Shared Hospital Services beats Burning Rock Biotech on 8 of the 13 factors compared between the two stocks.

About American Shared Hospital Services (Get Rating)

American Shared Hospital Services leases radiosurgery and radiation therapy equipment to health care providers. The company offers radiosurgery equipment for the Gamma Knife stereotactic radiosurgery, a non-invasive procedure to treat malignant and benign brain tumors, and arteriovenous malformations, as well as for trigeminal neuralgia. It also provides financing services for Leksell Gamma Knife units. In addition, the company offers proton beam radiation therapy services in Orlando, Florida and Long Beach, California, as well as offers planning, installation, reimbursement, and marketing support services to its customers. As of December 31, 2021, it had 115 operating Gamma Knife units located in the United States, as well as two in South America in Lima, Peru and Guayaquil, Ecuador. The company also operates one PBRT system. American Shared Hospital Services was founded in 1980 and is based in San Francisco, California.

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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