Financial Comparison: 23andMe (ME) & The Competition

23andMe (NASDAQ:MEGet Rating) is one of 944 public companies in the “Pharmaceutical preparations” industry, but how does it compare to its competitors? We will compare 23andMe to similar companies based on the strength of its analyst recommendations, earnings, profitability, dividends, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares 23andMe and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
23andMe $271.89 million -$217.49 million -4.05
23andMe Competitors $1.85 billion $250.15 million -2.66

23andMe’s competitors have higher revenue and earnings than 23andMe. 23andMe is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for 23andMe and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
23andMe 0 1 1 0 2.50
23andMe Competitors 2595 12291 38435 606 2.69

23andMe presently has a consensus price target of 5.00, indicating a potential upside of 86.57%. As a group, “Pharmaceutical preparations” companies have a potential upside of 127.32%. Given 23andMe’s competitors stronger consensus rating and higher possible upside, analysts plainly believe 23andMe has less favorable growth aspects than its competitors.

Profitability

This table compares 23andMe and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
23andMe -79.99% -25.41% -19.22%
23andMe Competitors -3,128.59% -1,451.33% -9.10%

Institutional and Insider Ownership

14.1% of 23andMe shares are owned by institutional investors. Comparatively, 45.5% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 15.0% of shares of all “Pharmaceutical preparations” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

23andMe has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, 23andMe’s competitors have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Summary

23andMe competitors beat 23andMe on 10 of the 13 factors compared.

About 23andMe (Get Rating)

23andMe Holding Co. operates as a consumer genetics and research company. It operates through two segments, Consumer & Research Services and Therapeutics. The Consumer & Research Services segment provides a suite of genetic reports, including information on customers' genetic ancestral origins, personal genetic health risks, and chances of passing on certain rare carrier conditions to their children, as well as reports on how genetics can impact responses to medications based on genetic testing of a saliva sample through its spit kit. It has a collaboration agreement with GlaxoSmithKline Intellectual Property (No.3) Limited to leverage genetic insights to validate, develop, and commercialize promising drugs. The Therapeutics segment focuses on the drug development; and discovery and development of novel therapies to improve patient lives across various therapeutic areas, including oncology, respiratory, and cardiovascular diseases, as well as offers out-licensing of intellectual property associated with identified drug targets related to drug candidates under clinical development. The company was founded in 2006 and is headquartered in Sunnyvale, California.

Receive News & Ratings for 23andMe Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 23andMe and related companies with MarketBeat.com's FREE daily email newsletter.