Veracyte (NASDAQ:VCYT – Get Free Report) is one of 844 public companies in the “Biotechnology” industry, but how does it contrast to its peers? We will compare Veracyte to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.
Institutional & Insider Ownership
47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 1.6% of Veracyte shares are owned by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are owned 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.
Valuation & Earnings
This table compares Veracyte and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Veracyte | $517.15 million | $66.35 million | 17.02 |
| Veracyte Competitors | $735.41 million | $13.62 million | -14.86 |
Veracyte’s peers have higher revenue, but lower earnings than Veracyte. Veracyte 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 Veracyte and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | 21.80% | 9.13% | 8.53% |
| Veracyte Competitors | -12,359.35% | -203.09% | -30.93% |
Volatility and Risk
Veracyte has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Veracyte’s peers have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Veracyte and its peers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 4 | 6 | 1 | 2.58 |
| Veracyte Competitors | 9800 | 15084 | 45398 | 1579 | 2.54 |
Veracyte presently has a consensus target price of $51.40, indicating a potential upside of 114.17%. As a group, “Biotechnology” companies have a potential upside of 104.17%. Given Veracyte’s stronger consensus rating and higher probable upside, research analysts plainly believe Veracyte is more favorable than its peers.
Summary
Veracyte beats its peers on 9 of the 13 factors compared.
Veracyte Company Profile
Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.
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