Veracyte (NASDAQ:VCYT – Get Free Report) and Shattuck Labs (NASDAQ:STTK – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Insider and Institutional Ownership
58.7% of Shattuck Labs shares are owned by institutional investors. 1.6% of Veracyte shares are owned by company insiders. Comparatively, 8.8% of Shattuck Labs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Veracyte has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Shattuck Labs has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 2 | 6 | 2 | 2.82 |
| Shattuck Labs | 1 | 0 | 9 | 2 | 3.00 |
Veracyte presently has a consensus price target of $55.78, indicating a potential upside of 38.96%. Shattuck Labs has a consensus price target of $12.78, indicating a potential upside of 114.03%. Given Shattuck Labs’ stronger consensus rating and higher possible upside, analysts plainly believe Shattuck Labs is more favorable than Veracyte.
Profitability
This table compares Veracyte and Shattuck Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | 20.37% | 9.26% | 8.61% |
| Shattuck Labs | N/A | -43.57% | -40.90% |
Earnings & Valuation
This table compares Veracyte and Shattuck Labs”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veracyte | $517.15 million | 6.24 | $66.35 million | $1.41 | 28.47 |
| Shattuck Labs | $1.00 million | 599.15 | -$48.81 million | ($0.51) | -11.71 |
Veracyte has higher revenue and earnings than Shattuck Labs. Shattuck Labs is trading at a lower price-to-earnings ratio than Veracyte, indicating that it is currently the more affordable of the two stocks.
Summary
Veracyte beats Shattuck Labs on 8 of the 14 factors compared between the two stocks.
About Veracyte
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.
About Shattuck Labs
Shattuck Labs, Inc., a clinical-stage biotechnology company, develops therapeutics for the treatment of cancer and autoimmune disease in the United States. The company's lead product candidate is SL-172154, which is in Phase 1 clinical trial for the treatment of ovarian, fallopian tube, and peritoneal cancers. Shattuck Labs, Inc. was incorporated in 2016 and is headquartered in Austin, Texas.
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