Grail (GRAL) and The Competition Financial Analysis

Grail (NASDAQ:GRAL) is one of 48 publicly-traded companies in the “Medical laboratories” industry, but how does it contrast to its peers? We will compare Grail to similar businesses based on the strength of its profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations for Grail and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grail	0	3	1	0	2.25
Grail Competitors	371	1443	2419	42	2.50

Grail currently has a consensus price target of $31.50, indicating a potential downside of 21.31%. As a group, “Medical laboratories” companies have a potential upside of 1,322.75%. Given Grail’s peers stronger consensus rating and higher possible upside, analysts clearly believe Grail has less favorable growth aspects than its peers.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Grail	$130.71 million	N/A	-0.66
Grail Competitors	$1.05 billion	-$110.55 million	-5.77

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

Profitability

This table compares Grail and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grail	N/A	N/A	N/A
Grail Competitors	-3,479.68%	-975.07%	-26.59%

Insider and Institutional Ownership

47.5% of shares of all “Medical laboratories” companies are held by institutional investors. 1.9% of Grail shares are held by insiders. Comparatively, 15.6% of shares of all “Medical laboratories” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Grail peers beat Grail on 7 of the 11 factors compared.

About Grail

GRAIL, Inc. operates as a commercial-stage healthcare company, which engages in the development of a technology for early detection of cancer. It utilizes machine learning, software, and automation to detect and identify multiple deadly cancer types in earlier stages. The company was founded by Jeffrey T. Huber, William H. Rastetter, Mostafa Ronaghi, and Richard D. Klausner on September 11, 2015 and is headquartered in Menlo Park, CA.