Head-To-Head Survey: Grail (NASDAQ:GRAL) and Guardant Health (NASDAQ:GH)

Guardant Health (NASDAQ:GH) and Grail (NASDAQ:GRAL) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Guardant Health and Grail, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guardant Health	0	0	15	0	3.00
Grail	0	3	0	0	2.00

Guardant Health presently has a consensus price target of $40.60, suggesting a potential upside of 25.46%. Grail has a consensus price target of $16.00, suggesting a potential downside of 11.55%. Given Guardant Health’s stronger consensus rating and higher possible upside, research analysts plainly believe Guardant Health is more favorable than Grail.

Valuation and Earnings

This table compares Guardant Health and Grail”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guardant Health	$692.26 million	5.78	-$479.45 million	($4.24)	-7.63
Grail	$117.67 million	5.17	N/A	N/A	N/A

Grail has lower revenue, but higher earnings than Guardant Health.

Institutional and Insider Ownership

92.6% of Guardant Health shares are held by institutional investors. 5.5% of Guardant Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Guardant Health and Grail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guardant Health	-74.02%	-1,200.44%	-29.88%
Grail	N/A	N/A	N/A

Summary

Guardant Health beats Grail on 7 of the 10 factors compared between the two stocks.

About Guardant Health

Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.

About Grail

GRAIL, Inc., a biotechnology company, focuses on developing technologies for early cancer detection. The company develops Galleri, a screening test for asymptomatic individuals over 50 years of age; and DAC, a diagnostic aid for cancer tests to accelerate diagnostic resolution for patients for whom there is a clinical suspicion of cancer. It is also developing minimal residual disease and other post-diagnostic tests. The company was incorporated in 2015 and is based in Menlo Park, California. GRAIL, Inc. operates as a former subsidiary of Illumina, Inc.