Financial Comparison: Castle Biosciences (NASDAQ:CSTL) versus Acadia Healthcare (NASDAQ:ACHC)

Castle Biosciences (NASDAQ:CSTLGet Free Report) and Acadia Healthcare (NASDAQ:ACHCGet Free Report) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Risk & Volatility

Castle Biosciences has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Castle Biosciences and Acadia Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castle Biosciences 1 1 7 1 2.80
Acadia Healthcare 2 5 7 1 2.47

Castle Biosciences presently has a consensus price target of $42.00, suggesting a potential upside of 19.95%. Acadia Healthcare has a consensus price target of $29.85, suggesting a potential upside of 2.67%. Given Castle Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Castle Biosciences is more favorable than Acadia Healthcare.

Earnings & Valuation

This table compares Castle Biosciences and Acadia Healthcare”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castle Biosciences $344.23 million 3.11 -$24.16 million ($0.66) -53.05
Acadia Healthcare $3.31 billion 0.82 -$1.10 billion ($12.45) -2.33

Castle Biosciences has higher earnings, but lower revenue than Acadia Healthcare. Castle Biosciences is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.6% of Castle Biosciences shares are owned by institutional investors. 6.1% of Castle Biosciences shares are owned by company insiders. Comparatively, 1.2% of Acadia Healthcare shares are owned by company 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.

Profitability

This table compares Castle Biosciences and Acadia Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castle Biosciences -5.43% -4.15% -3.45%
Acadia Healthcare -33.44% 6.19% 2.42%

Summary

Castle Biosciences beats Acadia Healthcare on 9 of the 13 factors compared between the two stocks.

About Castle Biosciences

(Get Free Report)

Castle Biosciences, Inc., a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus. In addition, the company provides DecisionDx-UM test, a proprietary risk stratification GEP test that predicts the risk of metastasis for patients with uveal melanoma; and IDgenetix, a pharmacogenomic test that helps guide drug treatment for major depressive disorder, schizophrenia, bipolar disorder, anxiety disorders, social phobia, obsessive-compulsive personality disorder, post-traumatic stress disorder, and attention deficit hyperactivity disorder. It offers its products to skin cancer, gastroenterology, and mental health markets. The company was incorporated in 2007 and is headquartered in Friendswood, Texas.

About Acadia Healthcare

(Get Free Report)

Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.

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