Castle Biosciences (NASDAQ:CSTL – Get Free Report) and HealthEquity (NASDAQ:HQY – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Valuation & Earnings
This table compares Castle Biosciences and HealthEquity”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Castle Biosciences | $344.23 million | 2.91 | -$24.16 million | ($0.66) | -49.64 |
| HealthEquity | $1.31 billion | 5.80 | $215.20 million | $2.77 | 33.22 |
Institutional & Insider Ownership
92.6% of Castle Biosciences shares are owned by institutional investors. Comparatively, 99.5% of HealthEquity shares are owned by institutional investors. 6.1% of Castle Biosciences shares are owned by company insiders. Comparatively, 1.6% of HealthEquity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Castle Biosciences and HealthEquity’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% |
| HealthEquity | 17.36% | 15.33% | 9.51% |
Analyst Ratings
This is a summary of current recommendations and price targets for Castle Biosciences and HealthEquity, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Castle Biosciences | 1 | 1 | 7 | 1 | 2.80 |
| HealthEquity | 1 | 1 | 10 | 1 | 2.85 |
Castle Biosciences presently has a consensus target price of $42.00, suggesting a potential upside of 28.21%. HealthEquity has a consensus target price of $112.20, suggesting a potential upside of 21.92%. Given Castle Biosciences’ higher probable upside, analysts plainly believe Castle Biosciences is more favorable than HealthEquity.
Risk and Volatility
Castle Biosciences has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Summary
HealthEquity beats Castle Biosciences on 11 of the 14 factors compared between the two stocks.
About Castle Biosciences
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 HealthEquity
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.
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