Critical Review: Guardant Health (GH) & Its Rivals

Guardant Health (NASDAQ: GH) is one of 24 public companies in the “Medical laboratories” industry, but how does it contrast to its competitors? We will compare Guardant Health to similar businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Earnings & Valuation

This table compares Guardant Health and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Guardant Health $90.64 million -$85.06 million -26.44
Guardant Health Competitors $1.13 billion $64.04 million -2.11

Guardant Health’s competitors have higher revenue and earnings than Guardant Health. Guardant Health is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Guardant Health and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guardant Health N/A N/A N/A
Guardant Health Competitors -108.16% -113.88% -33.85%

Insider & Institutional Ownership

69.5% of Guardant Health shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Medical laboratories” companies are owned by institutional investors. 17.1% of shares of all “Medical laboratories” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Guardant Health and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guardant Health 0 0 5 0 3.00
Guardant Health Competitors 178 637 745 46 2.41

Guardant Health currently has a consensus target price of $79.67, indicating a potential upside of 7.63%. As a group, “Medical laboratories” companies have a potential upside of 15.77%. Given Guardant Health’s competitors higher probable upside, analysts clearly believe Guardant Health has less favorable growth aspects than its competitors.

Guardant Health Company Profile

Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company offers liquid biopsy tests for advanced stage cancer, such as Guardant360, a molecular diagnostic test that measures various cancer-related genes; and GuardantOMNI, a broader gene panel, including genes associated with homologous recombination repair deficiency and biomarkers for immuno-oncology applications. It also provides LUNAR-1 for minimal residual disease and recurrence detection in cancer survivors. In addition, the company is developing LUNAR-2 for early detection of cancer in higher risk individuals. Further, it offers development services, including companion diagnostic development and regulatory approval, clinical trial referral, and liquid biopsy testing development and support services to biopharmaceutical companies and medical institutions. Guardant Health, Inc. was incorporated in 2011 and is headquartered in Redwood City, California.

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