Burning Rock Biotech (NASDAQ:BNR) versus Smiths Group (OTCMKTS:SMGZY) Critical Review

Smiths Group (OTCMKTS:SMGZY) and Burning Rock Biotech (NASDAQ:BNR) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Volatility & Risk

Smiths Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Burning Rock Biotech has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smiths Group	N/A	N/A	N/A
Burning Rock Biotech	-45.41%	-38.33%	-25.34%

Valuation and Earnings

This table compares Smiths Group and Burning Rock Biotech”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smiths Group	$3.94 billion	2.71	$314.80 million	N/A	N/A
Burning Rock Biotech	$70.67 million	1.29	-$47.49 million	($1.89)	-4.47

Smiths Group has higher revenue and earnings than Burning Rock Biotech.

Analyst Ratings

This is a summary of recent recommendations for Smiths Group and Burning Rock Biotech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smiths Group	0	2	0	1	2.67
Burning Rock Biotech	0	0	0	0	0.00

Insider and Institutional Ownership

30.0% of Burning Rock Biotech shares are held by institutional investors. 30.3% of Burning Rock Biotech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Smiths Group beats Burning Rock Biotech on 9 of the 11 factors compared between the two stocks.

About Smiths Group

Smiths Group plc operates as a technology company in Americas, Europe, the Asia Pacific, and internationally. It operates through four divisions: John Crane, Smiths Detection, Flex-Tek, and Smiths Interconnect. The John Crane division offers mechanical seals, seal support systems, power transmission couplings, and specialized filtration systems. The Smiths Detection division provides sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Flex-Tek division offers engineered components, flexible hosing, and rigid tubing that heat and move fluids and gases. The Smiths Interconnect division provides specialized electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems used in secure connectivity applications. The company serves general industrial, safety and security, energy, and aerospace markets. The company was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom.

About Burning Rock Biotech

Burning Rock Biotech Limited primarily develops and commercializes cancer therapy selection tests in the People's Republic of China. It operates in three segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. The company primarily offers next-generation sequencing-based tissue and liquid biopsy cancer therapy selection and prognosis prediction tests for various 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 OncoCompass IO, a corresponding test for liquid biopsy samples; OncoScreen IO, a pan-cancer test for tissue samples; and OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC. In addition, the company provides ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and brPROPHET, a pre-operative ctDNA detection and post-operative MRD calling for relapsed patients. Further, it has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; licensing agreement with Oncocyte Corporation to in-license DetermaRx, a risk stratification test for early stage lung cancer patients in China; and collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, CStone, BeiGene, Abbisko Therapeutics, and IMPACT Therapeutics and Merck KGaA. Additionally, the company offers OncoMaster, an automatic NGS data analysis and report interpretation machine for in-hospital model. Burning Rock Biotech Limited was incorporated in 2014 and is headquartered in Guangzhou, China.